Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930394788.pdf (New Zealand)
Anti-Money Laundering and Countering Financing of Terrorism Bill Government Bill As reported from the committee of the whole House 46—3 Anti-Money Laundering and Countering Financing of Terrorism Bill Key to symbols used in reprinted bill As reported from a select committee text inserted Hon Simon Power Anti-Money Laundering and Countering Financing of Terrorism Bill Government Bill Contents 1 2 3 3A 4 4A 5 6 Title Commencement Part 1 Preliminary provisions Purpose Overview Interpretation Application of this Act to reporting entities Amounts not in New Zealand currency Act binds the Crown Part 2 AML/CFT requirements and compliance 7 Non-compliance not excused by contractual obligations Subpart 1—Customer due diligence 8 9 10 11 Definitions Customer due diligence Reliance on risk assessment when establishing level of risk Basis for verifying identity 46—3 Page 8 8 9 9 11 21 22 22 22 23 23 24 24 1 Anti-Money Laundering and Countering Financing of Terrorism Bill Standard customer due diligence Circumstances when standard customer due diligence applies Standard customer due diligence: identity requirements Standard customer due diligence: verification of identity requirements Standard customer due diligence: other requirements Simplified customer due diligence Circumstances when simplified customer due diligence applies Simplified customer due diligence: identity requirements Simplified customer due diligence: verification of identity requirements Simplified customer due diligence: other requirements Enhanced customer due diligence Circumstances when enhanced customer due diligence applies Enhanced customer due diligence: identity requirements Enhanced customer due diligence: verification of identity requirements Enhanced customer due diligence: other requirements Politically exposed person Wire transfers: identity requirements Wire transfers: verification of identity requirements Correspondent banking relationships New or developing technologies, or products, that might favour anonymity Ongoing customer due
 diligence and account monitoring 22A 23 24 25 26 27 28 Ongoing customer due diligence and account monitoring Reliance on third parties Reliance on member of designated business group Reliance on other reporting entities or persons in another country Reliance on agents Use of information obtained from third party conducting customer due diligence Protection of personal information and designated business groups 29 30 31 32 33 2 24 25 25 26 26 27 27 28 28 29 30 30 30 31 32 32 34 34 35 36 37 38 38 Anti-Money Laundering and Countering Financing of Terrorism Bill Prohibitions Prohibitions if customer due diligence not conducted Prohibition on false customer names and customer anonymity Prohibition on establishing or continuing business relationship involving shell bank Subpart 2—Suspicious transaction reports Reporting entities to report suspicious transactions Nature of suspicious transaction report Privileged communication defined Auditors may report suspicious transactions Protection of persons reporting suspicious transactions Immunity from liability for disclosure of information relating to money laundering transactions Disclosure of information relating to suspicious transaction reports Disclosure of information in proceedings Disclosure of personal information relating to employees or senior managers Subpart 3—Record keeping Obligation to keep transaction records Obligation to keep identity and verification records Obligation to keep other records How records to be kept When records need not be kept Destruction of records Other laws not affected Subpart 4—Compliance with AML/CFT requirements Reporting entity must have AML/CFT programme and AML/CFT compliance officer Minimum requirements for AML/CFT programmes Risk assessment Review and audit of risk assessment and AML/CFT programme Annual AML/CFT report Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements Subpart 5—Codes of practice 34 35
 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Interpretation 39 39 39 41 41 42 43 44 44 45 47 47 48 49 50 50 50 51 51 51 52 53 54 55 55 56 3 Anti-Money Laundering and Countering Financing of Terrorism Bill 60 61 62 63 64 65 66 67 68 AML/CFT supervisors to prepare codes of practice for relevant sectors Procedure for approval and publication of codes of practice Amendment and revocation of codes of practice Proof of codes of practice Legal effect of codes of practice Subpart 6—Cross-border transportation of cash Reports about movement of cash into or out of New Zealand Reports about receipt of cash from outside New Zealand Reporting requirements Information to be forwarded to Commissioner Part 3 Enforcement Subpart 1—General provisions relating to Part Proceedings for civil penalties 69 When and how civil penalty proceedings brought Relationship between civil penalty and criminal proceedings 70 71 72 Relationship between concurrent civil penalty proceedings and criminal proceedings One penalty only rule Restriction on use of evidence given in civil penalty proceedings Immunities 72A 72B Protection for AML/CFT supervisors Protection for reporting entities, officers, etc, acting in compliance with this Act Subpart 2—Civil liability 76 77 Meaning of civil liability act Possible responses to civil liability act Formal warnings 78 Formal warnings 79 Enforceable undertakings Enforceable undertakings 4 56 57 58 58 59 59 60 60 61 61 62 62 63 63 63 64 64 64 65 Anti-Money Laundering and Countering Financing of Terrorism Bill 80 81 82 83 84 85 86 87 Enforcement of undertakings Assessment of compensation for breach of undertakings Injunctions Powers of High Court not affected Performance injunctions When High Court may grant performance injunctions Restraining injunctions When High Court may grant restraining injunctions and interim injunctions Undertaking as to damages not required by AML/CFT supervisor 88 Pecuniary penalties for civil liability act
 Pecuniary penalties Subpart 3—Offences Offence and penalties relating to civil liability act 89 Offence and penalties for civil liability act Offences relating to suspicious transaction reports Failing to report suspicious transaction Providing false or misleading information in connection with suspicious transaction report Unlawful disclosure of suspicious transaction report Failure to keep or retain adequate records relating to suspicious transaction Obstruction of investigation relating to suspicious transaction report Contravention of section 44(1) Defence Time limit for prosecution of offences relating to civil liability act and suspicious transaction reports Penalties 90 91 92 93 94 95 96 97 98 Other offences relating to non-compliance with AML/CFT requirements 99 100 101 Structuring transaction to avoid application of AML/CFT requirements Offence to obstruct AML/CFT supervisor Offence to provide false or misleading information to AML/CFT supervisor 65 65 66 66 66 67 67 68 68 69 69 70 70 71 71 71 71 72 72 73 73 73 5 Anti-Money Laundering and Countering Financing of Terrorism Bill 102 103 104 105 106 107 108 109 110 111 Time limit for prosecution of offences relating to non-compliance with AML/CFT requirements Penalties Offences relating to cross-border transportation of cash Failure to report cash over applicable threshold value moved into or out of New Zealand Failure to report cash over applicable threshold value received by person in New Zealand from overseas Structuring cross-border transportation to avoid application of AML/CFT requirements Defence Providing false or misleading information in connection with cash report Offence to obstruct or not to answer questions from Customs officer Penalties Chief executive of New Zealand Customs Service may deal with cash reporting offences Relationship with Customs and Excise Act 1996 112 Relationship with Customs and Excise Act 1996 Computer searches by Customs officer 73 73 74 74 74 74 75 75 75 75 76 112A Duty of
 persons with knowledge of computer or computer 77 network or other data storage devices to assist access to Customs officer Subpart 4—Search and seizure 113 Definitions Search warrants Search warrant Powers under search warrant Conduct of entry, search, and seizure Assistance with searches Enforcement officers to show identity card on request Announcement before entry Details of warrant to be given to occupier Occupier entitled to be present during search Use of electronic equipment Copies of documents seized to be provided Receipts for things seized 114 115 116 117 118 119 120 121 122 123 6 78 79 80 81 81 81 82 82 82 83 83 Anti-Money Laundering and Countering Financing of Terrorism Bill 124 Application of sections 198A and 198B of Summary Proceedings Act 1957 Return and retention of things seized 125 126 Return and retention of things seized Order to retain things seized Part 4 Institutional arrangements and miscellaneous provisions Subpart 1—Institutional arrangements AML/CFT supervisors AML/CFT supervisors Functions Powers 127 128 129 130 Matters relating to conduct of on-site inspections 130A Delegation of supervisory function and powers 130B Authority to act as delegate 130C Effect of delegation Use and disclosure of information Power to use information obtained as AML/CFT supervisor in other capacity and vice versa Restriction on power to use information under section 131 Power to disclose information supplied or obtained as AML/CFT supervisor Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes Enforcement officers Financial intelligence functions of Commissioner Financial intelligence functions of Commissioner Powers relating to financial intelligence functions of Commissioner Delegation of powers of Commissioner Guidelines relating to reporting of suspicious transactions Consultation on proposed guidelines Availability of guidelines Review of guidelines Co-ordination Role of Ministry AML/CFT co-ordination
 committee cl 1 145 146 147 148 149 150 Anti-Money Laundering and Countering Financing of Terrorism Bill Role of AML/CFT co-ordination committee Functions Subpart 2—Miscellaneous provisions Regulations Regulations Regulations relating to application of Act Regulations relating to countermeasures Consultation not required for consolidation of certain regulations and minor amendments Ministerial exemptions 151 Minister may grant exemptions 152 Minister must consult before granting exemption 153 Requirements relating to exemptions Transitional and savings provisions 154 Transitional and savings provisions Consequential amendments, repeals, and revocation 155 156 157 Amendments to other enactments Amendment to Financial Transactions Reporting Act 1996 consequential on bringing into force of Part 2 Amendment to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash Schedule 1 Transitional and savings provisions Schedule 2 Consequential amendments 98 98 99 100 103 103 104 104 105 105 105 105 106 107 108 The Parliament of New Zealand enacts as follows: 1 Title This Act is the Anti-Money Laundering and Countering Fi- nancing of Terrorism Act 2009.
Commencement 2 (1AA) Parts 1 and 4 (except section 156) come into force on the 5 day after the date that this Act receives the Royal assent.

8 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 3A (1AB) Sections 65 to 68, 104 to 112A, and 157 come into force 12 months after the date on which this Act receives the Royal assent.

Except as provided in subsection (3), the rest of this Act comes into force on a date to be appointed by the Governor- 5 General by Order in Council.
(1) (2) One or more Orders in Council may be made appointing dif- ferent dates for the commencement of different provisions.

(3) However, section 156 may not be brought into force unless every provision of Part 2 has been brought into force.
10 Part 1 Preliminary provisions 3 (1) Purpose The purposes of this Act are— (a) to detect and deter money laundering and the financing 15 of terrorism; and to maintain and enhance New Zealand’s international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Finan- cial Action Task Force; and to contribute to public confidence in the financial sys- tem.
20 (b) (c) (2) Accordingly, this Act facilitates cooperation amongst report- ing entities, AML/CFT supervisors, and various government agencies, in particular law enforcement and regulatory agen- 25 cies.

3A Overview (1) This section is a guide to the general scheme and effect of this Act, but does not affect the interpretation or application of the other provisions of the Act.

Part 1 deals with preliminary matters such as definitions of terms used in the Act.
It sets out the purpose of the Act and the extent to which it applies to reporting entities.
Part 2 deals with AML/CFT requirements and compliance and has 6 subparts, as follows: 30 35 (2) (3) 9 Part 1 cl 3A Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) (c) (d) (e) (f) subpart 1 includes provisions dealing with require- ments on reporting entities to conduct due diligence on customers and certain other persons, the ability of re- porting entities to rely on third parties to carry out cus- tomer due diligence and other AML/CFT functions, and 5 prohibitions on establishing or continuing business re- lationships and setting up facilities in certain circum- stances: subpart 2 includes provisions dealing with require- ments on reporting entities to report suspicious trans- 10 actions, protection of persons making suspicious trans- action reports, and disclosure of information relating to such reports: subpart 3 sets out requirements on reporting entities to keep records and includes provisions concerning the 15 storage and destruction of records: subpart 4 deals with reporting entities’ internal poli- cies and procedures relating to the prevention of money laundering and the financing of terrorism, including provisions setting out requirements for reporting en- 20 tities to have an AML/CFT programme for detecting and managing the risk of money laundering and the financing of terrorism, to carry out a risk assessment before conducting customer due diligence or establish- ing an AML/CFT programme, and to review, audit, 25 and report on their risk assessment and AML/CFT programmes: subpart 5 deals with codes of practice and includes provisions relating to the preparation of codes by AML/CFT supervisors, approval of codes of practice, 30 and their legal effect: subpart 6 contains provisions relating to the report- ing of certain movements of cash into and out of New Zealand.
Part 3 deals with enforcement and contains provisions relat- 35 ing to civil liability acts, offences, search and seizure, penal- ties, and immunity of certain persons from civil and criminal proceedings.
(4) 10 (5) 4 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4 Part 4 deals with institutional arrangements and miscellan- eous matters and has 2 subparts, as follows: (a) subpart 1 includes provisions that identify the AML/CFT supervisors and their functions, powers, and ability to delegate supervisory functions; the financial 5 intelligence functions of the Commissioner of Police and a requirement on that person to issue guidelines the roles relating to suspicious transaction reports; and responsibilities of the Ministry, the AML/CFT co-ordination committee required to be established by 10 the chief executive of the Ministry, and other agencies concerning monitoring, evaluating, and advising on the operation of the AML/CFT regulatory system: subpart 2 includes regulation making powers and pro- visions relating to the Minister’s power to grant exemp- 15 tions from the requirements of the Act.
(b) 20 Interpretation In this Act, unless the context otherwise requires,— AML/CFT means anti-money laundering and countering the financing of terrorism AML/CFT programme means a compliance programme es- tablished under section 53(1) AML/CFT requirements means the requirements set out in Part 2 AML/CFT supervisor, in relation to a reporting entity, means 25 the person referred to in section 127(1) that is responsible for supervising the reporting entity under Parts 3 and 4 applicable threshold value means the threshold value that— (a) (b) is prescribed in regulations; and applies to a particular person, class of persons, transac- 30 tion, class of transactions, financial activity, or class of financial activities prescribed in regulations bearer-negotiable instrument means— (a) (b) (c) (d) a bill of exchange; or a cheque; or a promissory note; or a bearer bond; or 35 11 Part 1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism Bill a traveller’s cheque; or a money order, postal order, or similar order; or any other instrument prescribed by regulations (e) (f) (g) beneficial owner means the individual who— (a) has effective control of a customer or person on whose 5 behalf a transaction is conducted; or owns a prescribed threshold of the customer or person on whose behalf a transaction is conducted (b) physical currency: bearer-negotiable instruments crediting it to an account held by the payee; or paying it to the payee beneficiary institution, in relation to a wire transfer from an ordering institution, means any person who receives those 10 funds and then makes those funds available to a person (the payee) by— (a) (b) business relationship means a business, professional, or com- 15 mercial relationship between a reporting entity and a customer that has an element of duration or that is expected by the re- porting entity, at the time when contact is established, to have an element of duration cash means— (a) (b) cash report means a report made under subpart 6 of Part 2 casino means the holder of a
 casino operator’s licence under the Gambling Act 2003 chief executive means the chief executive of the Ministry civil liability act has the meaning set out in section 76 code of practice and proposed code of practice have the meanings set out in section 59 Commissioner means the Commissioner of Police constable has the same meaning as in section 4 of the Policing Act 2008 correspondent banking relationship has the meaning set out in section 26(3) country includes any State, territory, province, or other part 35 of a country 25 30 20 12 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4 customer— (a) means a new customer or an existing customer; and (b) includes— (i) (ii) (iii) (iv) a facility holder: a person conducting or seeking to conduct an oc- 5 casional transaction through a reporting entity: a junket organiser as defined in section 4(1) of the Gambling Act 2003: a person or class of persons declared by regula- tions to be a customer for the purposes of this 10 Act; but (c) excludes a person or class of persons that is declared by regulations not to be a customer for the purposes of this Act Customs officer has the same meaning as in section 2(1) of 15 the Customs and Excise Act 1996 designated business group means a group of 2 or more per- sons where— (b) each member of the group has elected, in writing, to be a member of the group and the election is in force; and 20 each election was made in accordance with regulations (if any); and no member of the group is a member of another desig- nated business group; and each member of the group is— (i) (c) (d) (e) 25 (B) related to each other member of the group within the meaning of section 2(3) of the Companies Act 1993 and is— (A) a reporting entity resident in New Zealand; or a person that is resident in another coun- try with sufficient anti-money laundering and countering the financing of terrorism systems and is supervised or regulated for anti-money laundering and countering the 35
 financing of terrorism purposes; or providing a service under a joint venture agree- ment, to which each member of the group is a party; or 30 (ii) 13 Part 1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism Bill (iv) (iii) a government department named in Schedule 1 of the State Sector Act 1988, a State enterprise under the State-Owned Enterprises Act 1986, or a Crown entity under section 7 of the Crown En- tities Act 2004; or related to 1 or more of the entities in subpara- graph (iii) through the provision of common products or services; or an entity or class of entities prescribed by regula- tions to be a member of a designated entity; and each member of the group satisfies any conditions that may be prescribed by regulations and that apply to that member (v) (f) domestic wire transfer has the meaning set out in sec- tion 24(7) existing customer, in relation to a reporting entity, means a person who was in a business relationship with the reporting entity immediately before the commencement of Part 2 facility— (a) means any account or arrangement— (i) (ii) that is provided by a reporting entity; and through which a facility holder may conduct 2 or more transactions; and (b) without limiting paragraph (a), includes— a life insurance policy: (i) (ii) membership of a superannuation scheme: (iii) the provision, by a reporting entity, of facilities for safe custody, including (without limitation) a safety deposit box: an account or arrangement declared by regula- 30 tions to be a facility for the purposes of this Act; but (iv) (c) excludes an account or arrangement declared by regu- lations not to be a facility for the purposes of this Act facility holder, in relation to a facility,— (a) means the person in whose name the facility is estab- 35 lished; or 14 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4 (b) (c) if that facility is a life insurance policy, means any per- son who for the time being is the
 legal holder of that policy; or if that facility consists of membership of a superannu- ation scheme, means any person who is a member of the 5 scheme within the meaning of member in section 2(1) of the Superannuation Schemes Act 1989 financial institution— (a) means a person who, in the ordinary course of business, (ii) carries on 1 or more of the following financial activities: 10 accepting deposits or other repayable funds from (i) the public: lending to or for a customer, including consumer credit, mortgage credit, factoring (with or with- out recourse), and financing of commercial trans- 15 actions (including forfeiting): (iii) financial leasing (excluding financial leasing ar- (iv) (v) (vi) (vii) 20 rangements in relation to consumer products): transferring money or value for, or on behalf of, a customer: issuing or managing the means of payment (for example, credit or debit cards, cheques, trav- eller’s cheques, money orders, bankers’ drafts, or electronic money): undertaking financial guarantees and commit- 25 ments: trading for the person’s own account or for the accounts of customers in any of the following: (A) money market instruments (for example, (B) (C) cheques, bills, certificates of deposit, or 30 derivatives): foreign exchange: exchange, interest rate, or index instru- ments: transferable securities: commodity futures trading: (viii) participating in securities issues and the provi- sion of financial services related to those issues: (D) (E) 35 (ix) managing individual or collective portfolios: 15 Part 1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism Bill (x) (xi) safe keeping or administering of cash or liquid securities on behalf of other persons: investing, administering, or managing funds or money on behalf of other persons: (xii) underwriting or placement of life insurance or 5 (b) (c) other investment related insurance: (xiii) money or currency changing; and includes a person or class of persons declared by regu- lations
 to be a financial institution for the purposes of this Act; but excludes a person or class of persons declared by regu- lations not to be a financial institution for the purposes of this Act financing of terrorism has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002 gambling inspector has the same meaning as in section 4(1) of the Gambling Act 2003 government agency means— (a) a government department named in Schedule 1 of the State Sector Act 1988; or a Crown entity under section 7 of the Crown Entities Act 2004; or the Reserve Bank, the Parliamentary Counsel Office, the New Zealand Police, and the New Zealand Security Intelligence Service; or any international counterpart of the entities in para- graphs (a) to (c) (b) (c) (d) 10 15 20 25 identity information means information obtained under sec- tions 13, 17, 21, and 24(1) and (2) and any other informa- tion relating to identity prescribed by sections 26(2)(g) and 30 27(b) individual means a natural person, other than a deceased nat- ural person intermediary institution, in relation to a wire transfer, is a person that participates in a transfer of funds that takes place 35 through more than 1 institution but is not an ordering institu- tion or a beneficiary institution 16 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4 law enforcement purposes means— the administration of this Act: (a) the detection, investigation, and prosecution of— (b) (i) (ii) (iii) any offence under this Act; or a money laundering offence; or any offence under section 143B of the Tax Ad- ministration Act 1994; or any serious offence (within the meaning of sec- tion 243(1) of the Crimes Act 1961) (iv) 5 (c) (d) (e) (f) (g) (h) the enforcement of the Proceeds of Crime Act 1991 or 10 the Criminal Proceeds (Recovery) Act 2009: the enforcement of the Misuse of Drugs Act 1975: the enforcement of the Terrorism Suppression Act 2002: the administration of the Mutual Assistance in Criminal Matters
 Act 1992: the investigation of matters relating to security under the New Zealand Security Intelligence Service Act 1969: any action referred to in paragraphs (a) to (g) taken in respect of legislation of an overseas jurisdiction that 20 is broadly equivalent to the enactments listed in those paragraphs 15 25 Minister means the Minister who is, with the authority of the Prime Minister, for the time being responsible for the admin- istration of this Act Ministry means the department of State that, with the author- ity of the Prime Minister, is for the time being responsible for the administration of this Act money laundering offence means an offence against section 243 of the Crimes Act 1961 or section 12B of the Misuse of 30 Drugs Act 1975 or any act committed overseas that, if commit- ted in New Zealand, would be an offence under those sections of those Acts occasional transaction— (a) means a cash transaction that occurs outside of a busi- 35 ness relationship and is over the applicable threshold value (whether the transaction is carried out in a single operation or several operations that appear to be linked); and 17 Part 1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) (c) includes a transaction or class of transactions declared by regulations to be an occasional transaction for the purposes of this Act; but excludes— (i) (ii) cheque deposits; and a transaction or class of transactions declared by regulations not to be an occasional transaction for the purposes of this Act 5 ordering institution— (a) means any person who has been instructed by a person 10 (the payer) to electronically transfer funds controlled by the payer to a person (the payee) who may or may not be the payer on the basis that the transferred funds will be made available to the payee by a beneficiary institution; and includes a person declared by regulations to be an order- ing institution for the purposes of this Act; but excludes a person or class of persons declared
 by regu- lations not to be an ordering institution for the purposes of this Act (b) (c) 20 15 physical currency means the coin and printed money (whether of New Zealand or of a foreign country) that— (a) (b) is designated as legal tender; and circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue 25 Police employee has the same meaning as in section 4 of the Policing Act 2008 politically exposed person means— (a) an individual who holds, or has held at any time in the preceding 12 months, in any overseas country the 30 prominent public function of— (i) Head of State or head of a country or government; or government minister or equivalent senior politi- cian; or (ii) 35 (iii) Supreme Court Judge or equivalent senior Judge; or 18 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4 (iv) (v) governor of a central bank or any other position that has comparable influence to the Governor of the Reserve Bank of New Zealand; or senior foreign representative, ambassador, or high commissioner; or high-ranking member of the armed forces; or (vi) (vii) board chair, chief executive, or chief financial of- ficer of, or any other position that has comparable influence in, any State enterprise; and 5 an immediate family member of person referred to in 10 paragraph (a), including— (i) (ii) a spouse; or a partner, being a person who is considered by the relevant national law as equivalent to a spouse; or a child and a child’s spouse or partner; or a parent; and (iii) (iv) having regard to information that is public or readily available,— (i) 15 any individual who is known to have joint bene- ficial ownership of a legal entity or legal arrange- 20 ment, or any other close relationship, with a per- son referred to in paragraph (a); or any individual who has sole beneficial owner- ship of a legal entity or legal arrangement that is known to exist for the benefit of a person de- 25 scribed in paragraph (a) (ii) (b) (c)
 registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989 regulations means regulations made under this Act reporting entity— (a) means— (i) (ii) includes— (i) a financial institution; and a casino; and (b) a person or class of persons declared by regula- 35 tions to be a reporting entity for the purposes of this Act; and 30 19 Part 1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism Bill (ii) any other person that is required by any enact- ment to comply with this Act as if it were a re- porting entity; but (c) excludes a person or class of persons declared by regu- lations not to be a reporting entity for the purposes of 5 this Act security has the same meaning as in section 2(1) of the New Zealand Security Intelligence Service Act 1969 senior manager (and senior management correspondingly) means,— (a) 10 in relation to a reporting entity that is a company, a dir- ector within the meaning of section 126 of the Compan- ies Act 1993; and in relation to a reporting entity that is not a company, a person who occupies a position comparable to that of a 15 director (for example, a trustee or partner); and any other person who occupies a position within a re- porting entity that allows that person to exercise an in- fluence over the management or administration of the reporting entity (for example, a chief executive or a 20 chief financial officer) (b) (c) shell bank has the meaning set out in section 36(2) suspicious property report has the same meaning as in sec- tion 4(1) of the Terrorism Suppression Act 2002 suspicious transaction report means a report made under 25 section 37 transaction— (a) means any deposit, withdrawal, exchange, or transfer of funds (in any denominated currency), whether— (i) (ii) in cash; or by cheque, payment order, or other instrument; or by electronic or other non-physical means; and (iii) 30 (b) without limiting paragraph (a), includes— (i) any payment made in satisfaction, in whole or
 in 35 part, of any contractual or other legal obligation; and 20 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 1 cl 4A (c) (ii) a transaction or class of transactions declared by regulations to be a transaction for the purposes of this Act; but excludes the following: (i) (ii) the placing of any bet: participation in gambling as defined in section 4(1) of the Gambling Act 2003: a transaction or class of transactions declared by regulations not to be a transaction for the pur- poses of this Act (iii) trustee has the same meaning as in section 2(1) of the Trustee Act 1956 verification information means information obtained under sections 14, 18, 22, and 25 wire transfer— (a) means a transaction carried out on behalf of a person (the originator) through a reporting entity by electronic means with a view to making an amount of money avail- able to a beneficiary (who may also be the originator) at another financial institution; and includes a transfer or transaction, or class of transfers or transactions, declared by regulations to be a wire trans- fer for the purposes of this Act; but excludes— (i) (b) (c) 5 10 15 20 transfers and settlements between financial insti- 25 tutions if both the originator and the beneficiary are financial institutions acting on their own be- half; and credit and debit card transactions if the credit or debit card number accompanies the transaction; 30 and any other transfer or transaction or class of trans- fers or transactions declared by regulations not to be a wire transfer for the purposes of this Act.
(ii) (iii) 4A Application of this Act to reporting entities 35 This Act applies to a reporting entity only to the extent that— in the case of a reporting entity that is a financial insti- (a) tution, the financial activities undertaken by that entity 21 Part 1 cl 5 Anti-Money Laundering and Countering Financing of Terrorism Bill 5 (1) (2) (3) (b) fall within the activities described in the definition of fi- nancial institution; or a reporting entity, that is not a financial institution, is carrying out activities that may give rise to a risk of money laundering or financing of terrorism.
Amounts not in New Zealand currency This section applies if, for the purposes of this Act, it is neces- sary to determine whether the amount of any cash (whether alone or together with any other amount of cash)— (a) (b) exceeds the applicable threshold value; and is denominated in a currency other than New Zealand currency.
5 10 If this section applies, the amount of the cash is taken to be the equivalent in New Zealand currency,— (a) calculated at the rate of exchange on the date of the 15 determination; or if there is more than 1 rate of exchange on that date, calculated at the average of those rates.
(b) For the purposes of this section, a written certificate purport- ing to be signed by an officer of any bank in New Zealand that 20 a specified rate of exchange prevailed between currencies on a specified day, and that at such rate a specified sum in a par- ticular currency is equivalent to a specified sum in terms of the currency of New Zealand, is sufficient evidence of the rate of exchange so prevailing and of the equivalent sums in terms of 25 the respective currencies.
Compare: 1996 No 9 s 4 6 Act binds the Crown This Act binds the Crown.

Part 2 AML/CFT requirements and compliance 30 Non-compliance not excused by contractual obligations This Act has effect despite anything to the contrary in any contract or agreement.
7 (1) 22 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 9 (2) No person is excused from compliance with any requirement of this Act or regulations by reason only that compliance with that requirement would constitute breach of any contract or agreement.
8 Subpart 1—Customer due diligence 5 Definitions In this subpart, unless the context otherwise requires,— enhanced customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 21 to 27 and any other requirements prescribed by regulations 10 simplified customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 17 to 19 and any other requirements prescribed by regulations standard customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 15 13 to 15 and any other requirements prescribed by regula- tions.
Customer due diligence 9 (1) A reporting entity must conduct customer due diligence on— (2) (3) 20 a customer: any beneficial owner of a customer: any person acting on behalf of a customer.
(a) (b) (c) For the purposes of subsection (1)(b), a customer who is an individual and who the reporting entity believes on reason- able grounds is not acting on behalf of another person is to be 25 treated as if he or she were also the beneficial owner unless the reporting entity has reasonable grounds to suspect that that customer is not the beneficial owner.
The type of customer due diligence that must be conducted by a reporting entity is,— (a) in the circumstances described in section 12, at least standard customer due diligence: in the circumstances described in section 16, at least simplified customer due diligence: in the circumstances described in section 20, enhanced 35 customer due diligence.
(b) (c) 30 23 Part 2 cl 10 Anti-Money Laundering and Countering Financing of Terrorism Bill (4) A reporting entity that is required to conduct customer due dili- gence in the circumstances described in sections 12, 16, and 20 is not required to obtain or verify any documents, data, or information that it has previously obtained and verified for the purposes of carrying out customer due diligence in accordance 5 with this Act, unless there are reasonable grounds for the re- porting entity to doubt the adequacy or veracity of the docu- ments, data, or information previously obtained.
(5) Nothing in subsection (4) affects the obligation to conduct ongoing customer due diligence in accordance with sec- 10 tion 28.

Reliance on risk assessment when establishing level of risk When establishing the level of risk involved for the purposes of this subpart, a reporting entity must rely on its AML/CFT programme and its risk assessment undertaken in accordance 15 with section 55.
Basis for verifying identity Verification of identity must be done on— (a) (b) the basis of documents, data, or information issued by a reliable and independent source; or any other basis applying to a specified situation, cus- tomer, product, service, business relationship, or trans- action prescribed by regulations.
Standard customer due diligence Circumstances when standard customer due diligence applies A reporting entity must conduct standard customer due dili- gence in the following circumstances: (a) if the reporting entity establishes a business relationship with a new customer: if a customer seeks to conduct an occasional transaction through the reporting entity: if, in relation to an existing customer, and according to the level of risk involved,— (b) (e) 20 25 30 10 11 12 24 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 14 (i) (iv) there has been a material change in the nature or purpose of the business relationship; and the reporting entity considers that it has insuffi- cient information about the customer: any other circumstances specified in regulations.
(f) 13 Standard customer due diligence: identity requirements A reporting entity must obtain the following identity informa- tion in relation to the persons referred to in section 9(1): (a) (b) (c) the person’s full name; and the person’s date of birth; and if the person is not the customer, the person’s relation- ship to the customer; and the person’s address or registered office; and the person’s company identifier or registration number; and any information prescribed by regulations.
(d) (e) (f) 14 Standard customer due diligence: verification of identity requirements (1) A reporting entity must— 5 10 15 (a) (c) (b) take reasonable steps to satisfy itself that the informa- 20 tion provided under section 13 is correct; and according to the level of risk involved, take reasonable steps to verify any beneficial owner’s identity so that the reporting entity is satisfied that it knows who the beneficial owner is; and if a person is acting on behalf of the customer, accord- ing to the level of risk involved, take reasonable steps to verify the person’s identity and authority to act on behalf of the customer so that the reporting entity is sat- isfied it knows who the person is and that the person has 30 authority to act on behalf of the customer; and verify any other information prescribed by regulations.
(d) Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business relationship or conducting an occasional transaction.
(3) Verification of identity may be completed after the business (2) 35 25 relationship has been established if— 25 5 10 Part 2 cl 15 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) it is essential not to interrupt normal business practice; and (b) money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring; and verification of identity is completed as soon as is prac- ticable once the business relationship has been estab- lished.
(c) 15 Standard customer due diligence: other requirements A reporting entity must also obtain— (a) information on the nature and purpose of the proposed business relationship between the customer and the re- porting entity; and sufficient information to determine whether the cus- tomer should be subject to enhanced customer due dili- 15 gence.
(b) Simplified customer due diligence 16 Circumstances when simplified customer due diligence applies (1A) A reporting entity may conduct simplified customer due dili- 20 gence if— (a) (b) (c) it establishes a business relationship with one of the cus- tomers specified in subsection (1B); or one of the customers specified in subsection (1B) con- ducts an occasional transaction through the reporting 25 entity; or a customer conducts a transaction or provides a product or service specified in regulations through the reporting entity.
(1B) The following are customers for the purposes of subsection 30 (1A): (a) (b) a company that is listed on an exchange registered under Part 2B of the Securities Markets Act 1988: a government department named in Schedule 1 of the State Sector Act 1988: 35 26 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 18 (c) (d) (e) (f) a local authority as defined in section 5 of the Local Government Act 2002: the New Zealand Police: the New Zealand Security Intelligence Service: any other entity or class of entities specified in regula- 5 tions.
(2) A reporting entity may also conduct simplified customer due diligence on a person who purports to act on behalf of a cus- tomer when— (a) (b) the reporting entity already has a business relationship 10 with the customer at the time the person acts on behalf of the customer; and the reporting entity has conducted one of the specified types of customer due diligence on the customer in ac- cordance with this Act and regulations (if any).
For the avoidance of doubt, nothing in this subpart requires identification or verification of identity of a beneficial owner of a customer in respect of whom a reporting entity may conduct simplified customer due diligence.
15 (3) 17 Simplified customer due diligence: identity requirements A reporting entity must obtain the following identity informa- tion in relation to a person acting on behalf of the customer: (a) (b) (c) (d) the person’s full name; and the person’s date of birth; and the person’s relationship to the customer; and any information prescribed by regulations.
20 25 18 Simplified customer due diligence: verification of identity requirements (1) A reporting entity must, according to the level of risk involved, verify the identity of a person acting on behalf of a customer 30 and that person’s authority to act for the customer so that it is satisfied it knows who the person is and that the person has authority to act on behalf of the customer.
(2) Verification of identity must be carried out before the business relationship is established or the occasional transaction is con- 35 ducted or the person acts on behalf of the customer.
27 Part 2 cl 19 Anti-Money Laundering and Countering Financing of Terrorism Bill (3) 19 For the purposes of verifying a person’s authority to act in the circumstances described in section 16, a reporting entity may rely on an authority provided in an application form or other document provided to the reporting entity that shows a person’s authority to act or transact on an account.
Simplified customer due diligence: other requirements In the circumstances described in section 16(1A)(a), a re- porting entity must also obtain information on the nature and purpose of the proposed business relationship between the cus- tomer and the reporting entity.
5 10 Enhanced customer due diligence 20 Circumstances when enhanced customer due diligence applies (1) A reporting entity must conduct enhanced customer due dili- gence in accordance with sections 21 and 22 in the follow- 15 ing circumstances: (aa) if the reporting entity establishes a business relationship with a customer that is— (i) a trust or another vehicle for holding personal assets: a non-resident customer from a country that has insufficient anti-money laundering and counter- ing financing of terrorism systems or measures in place: a company with nominee shareholders or shares 25 in bearer form: 20 (ii) (iii) (ab) if customer seeks to conduct an occasional transaction through the reporting entity and that customer is— (i) a trust or another vehicle for holding personal assets: a non-resident customer from a country that has insufficient anti-money laundering and counter- ing financing of terrorism systems or measures in place: a company with nominee shareholders or shares 35 in bearer form: 30 (ii) (iii) 28 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 21 (b) (c) (d) if a customer seeks to conduct, through the reporting en- tity, a complex, unusually large transaction or unusual pattern of transactions that have no apparent or visible economic or lawful purpose: when a reporting entity considers that the level of risk 5 involved is such that enhanced due diligence should apply to a particular situation: any other circumstances specified in regulations.
(2) A reporting entity must conduct enhanced customer due dili- gence in accordance with section 23 if— (a) it establishes a business relationship with a customer who it has determined is a politically exposed person; or a customer who it has determined is a politically ex- posed person seeks to conduct an occasional transaction 15 through the reporting entity.
(b) (3) A reporting entity must conduct enhanced customer due dili- gence in accordance with sections 24 and 25 if it is an order- ing institution, an intermediary institution, or a beneficiary in- stitution in relation to a wire transfer.

(4) A reporting entity must conduct enhanced customer due dili- gence in accordance with section 26 if it has, or proposes to have, a correspondent banking relationship.
(5) A reporting entity must conduct enhanced due diligence in ac- 10 20 25 cordance with section 27 if— (a) it establishes a business relationship with a customer that involves new or developing technologies, or new or developing products, that might favour anonymity; or a customer seeks to conduct an occasional transaction 30 through the reporting entity that involves new or devel- oping technologies, or new or developing products, that might favour anonymity.
(b) 21 Enhanced customer due diligence: identity requirements A reporting entity must, in relation to a person referred to in 35 section 9(1), obtain the information required under section 13 and the following additional information: 29 Part 2 cl 22 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) information relating to the source of the funds or the wealth of the customer; and any additional information prescribed by regulations.
22 Enhanced customer due diligence: verification of identity requirements 5 (1) A reporting entity must— (a) (b) conduct the verification of identity requirements for standard customer due diligence set out in section 14; and according to the level of risk involved, take reason- 10 able steps to verify the information obtained under sec- tion 21(a); and (c) verify any other information prescribed by regulations.
Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business 15 relationship or conducting an occasional transaction.
(3) Verification of identity may be completed after the business (2) relationship has been established if— (a) it is essential not to interrupt normal business practice; and 20 (b) money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring; and verification of identity is completed as soon as is prac- ticable once the business relationship has been estab- 25 lished.
(c) 22A Enhanced customer due diligence: other requirements In the circumstances described in section 20(1)(aa), 20(2)(a), and 20(5)(a), a reporting entity must also obtain in- formation on the nature and purpose of the proposed business 30 relationship between the customer and the reporting entity.
Politically exposed person The reporting entity must, as soon as practicable after estab- lishing a business relationship or conducting an occasional transaction, take reasonable steps to determine whether the 35 23 (1) 30 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 24 (2) (3) customer or any beneficial owner is a politically exposed per- son.
If a reporting entity determines that a customer or beneficial owner with whom it has established a business relationship is a politically exposed person, then— (a) the reporting entity must have senior management ap- proval for continuing the business relationship; and the reporting entity must obtain information about the source of wealth or funds of the customer or beneficial owner and take reasonable steps to verify the source of 10 that wealth or those funds.
(b) 5 If a reporting entity determines that a customer or beneficial owner with whom it has conducted an occasional transaction is a politically exposed person, then the reporting entity must, as soon as practicable after conducting that transaction, take rea- 15 sonable steps to obtain information about the source of wealth or funds of the customer or beneficial owner and verify the source of that wealth or those funds.
(c) 24 Wire transfers: identity requirements (1) A reporting entity that is an ordering institution must iden- 20 tify the originator of a wire transfer that is over the applicable threshold value by obtaining the following information: (a) (b) the originator’s full name; and the originator’s account number or other identifying in- formation that may be prescribed and allows the trans- 25 action to be traced back to the originator; and one of the following: (i) (ii) (iii) (iv) any information prescribed by regulations.
(2) However, if the wire transfer is a domestic wire transfer, a reporting entity that is an ordering institution may identify the originator by obtaining the originator’s account number or 35 other identifying information that may be prescribed and al- lows the transaction to be traced back to the originator if the reporting entity that is the ordering institution is able to pro- the originator’s address: the originator’s national identity number: the originator’s customer identification number: the originator’s place and date of birth; and (d) 30 31 Part 2 cl 25 Anti-Money Laundering and Countering Financing of Terrorism Bill vide the information specified in subsection (1)(a) and (c) to (e) within 3 working days of a request being made by the beneficiary institution.
Regulations may be made under section 148(1)(ac) exempt- ing the reporting entity from the obligation to obtain some or 5 all of the information set out in subsection (1) in relation to a specified transfer or transaction.

The information obtained by the reporting entity (the ordering institution under subsection (1) or (2), as the case may be) must accompany the wire transfer.
10 (3) (4) (5) A reporting entity that is a beneficiary institution must— (a) (b) use effective risk-based procedures for handling wire transfers that are not accompanied by all the informa- tion specified in subsection (1); and consider whether the wire transfers constitute a suspi- 15 cious transaction.

(6) Any information obtained by a reporting entity that is an inter- mediary institution must be maintained by that reporting entity with the wire transfer accompanying the information.
For the purposes of this section, a domestic wire transfer is 20 a wire transfer where the ordering institution, the intermedi- ary institution, and the beneficiary institution are all in New Zealand.
(7) 25 Wire transfers: verification of identity requirements (1) The ordering institution must, according to the level of risk 25 involved,— (a) verify the originator’s identity so that the reporting en- tity is satisfied that the information provided under sec- tion 24 is current and correct; and verify any other information prescribed by regulations.

30 (b) (2) Verification of the originator’s identity must be carried out be- fore the wire transfer is ordered.
Correspondent banking relationships 26 (1) A financial institution (the correspondent) that has, or pro- poses to have, a correspondent banking relationship with a re- 35 spondent financial institution (the respondent) must, accord- 32 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 26 ing to the level of risk involved, conduct enhanced customer due diligence as set out in subsection (2) in relation to corre- spondent accounts that are used, or are proposed to be used, for payments to, or receipts from, foreign financial institutions.
The correspondent must— (a) 5 (2) (b) (c) (d) (e) (f) gather enough information about the respondent to understand fully the nature of the respondent’s busi- ness; and determine from publicly available information the repu- tation of the respondent and whether and to what extent 10 the respondent is supervised for AML/CFT purposes, including whether the respondent has been subject to a money laundering or financing of terrorism investiga- tion or regulatory action; and assess the respondent’s anti-money laundering and 15 countering financing of terrorism controls to ascertain that those controls are adequate and effective; and have approval from its senior management before estab- lishing a new correspondent banking relationship; and document the respective AML/CFT responsibilities of 20 the correspondent and the respondent; and be satisfied that, in respect of those of the respondent’s customers who have direct access to accounts of the correspondent, the respondent― (i) has verified the identity of, and conducts ongoing 25 monitoring in respect of, those customers; and is able to provide to the correspondent, on re- quest, the documents, data, or information ob- tained when conducting the relevant customer due diligence and ongoing customer due dili- 30 gence; and (ii) (3) (g) meet any other requirements prescribed by regulations and that apply to correspondent banking relationships.
For the purposes of this Act, a correspondent banking re- lationship means a relationship that involves the provision of 35 banking services by a financial institution (the correspondent) to another financial institution (the respondent) if— 33 Part 2 cl 27 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) (c) (d) (e) the correspondent carries on an activity or business at or through a permanent establishment of the correspon- dent in a particular country; and the respondent carries on an activity or business at or through a permanent establishment of the respondent in 5 another country; and the correspondent banking relationship relates, in whole or in part, to those permanent establishments; and the relationship is not of a kind specified in regulations; and the banking services are not of a kind specified in regu- lations.
10 27 New or developing technologies, or products, that might favour anonymity Before a reporting entity establishes a business relationship or 15 conducts an occasional transaction that involves new or devel- oping technologies, or new or developing products, that might favour anonymity, the reporting entity must, in addition to the requirements in sections 13 and 14,— (a) take any additional measures that may be needed to 20 mitigate and manage the risk of new or developing tech- nologies, or new or developing products, that might favour anonymity from being used in the commission of a money laundering offence or for the financing of terrorism; and 25 (b) meet any other requirements prescribed by regulations and that apply to the particular technology or product.
Ongoing customer due diligence and account monitoring 28 (1) Ongoing customer due diligence and account monitoring This section applies to a business relationship between a re- porting entity and a customer.
30 (2) A reporting entity must conduct ongoing customer due dili- gence and undertake account monitoring in order to— (a) ensure that the business relationship and the transac- 35 tions relating to that business relationship are consis- 34 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 29 tent with the reporting entity’s knowledge about the cus- tomer and the customer’s business and risk profile; and identify any grounds for reporting a suspicious transac- tion under section 37(1)(b).
(b) (3) When conducting ongoing customer due diligence and under- 5 taking account monitoring, the reporting entity must have re- gard to— (a) the type of customer due diligence conducted when the business relationship with the customer was estab- lished; and the level of risk involved.
(b) 10 (4) When conducting ongoing customer due diligence and under- taking account monitoring, a reporting entity must do at least the following: (a) regularly review the customer’s account activity and 15 transaction behaviour; and regularly review any customer information obtained under sections 13, 15, 17, 19, 21, 22A, 23, 24, 26, and 27, or, in relation to an existing customer, any customer information the reporting entity holds about 20 the customer; and anything prescribed by regulations.
(b) (c) Reliance on third parties Reliance on member of designated business group 29 (1) A reporting entity (member A) that is a member of a desig- 25 nated business group may— (a) rely on another member of the group (member B) to conduct any customer due diligence procedures required for customer due diligence under this Act or regulations as long as— (i) any identity information is given to member A by member B before member A establishes a busi- ness relationship or an occasional transaction is conducted; and any verification information is given to member 35 A by member B as soon as practicable, but no later than 5 working days, after the business rela- (ii) 30 35 Part 2 cl 30 Anti-Money Laundering and Countering Financing of Terrorism Bill tionship is established or the occasional transac- tion is conducted: (b) adopt that part of an AML/CFT programme of another member of the group that relates to record keeping, ac- count monitoring, ongoing customer due diligence, and 5 annual reporting and share and use the procedures, poli- cies, and controls relating to those parts of the pro- gramme subject to any conditions prescribed by regu- lations: use another member of the group’s risk assessment if 10 that risk assessment is relevant to member A’s business: (d) make a suspicious transaction report on behalf of any other member or all members of the designated business group.
(c) (1A) Despite subsection (1), a reporting entity, and not the mem- 15 ber of the designated business group relied on by the reporting entity, is responsible for ensuring that it is complying with this Act and regulations.
(1B) An AML/CFT supervisor for a reporting entity that is part of a designated business group may require the reporting en- 20 tity to undertake its own risk assessment or develop its own AML/CFT programme if the AML/CFT supervisor is of the view that the risk assessment or AML/CFT programme being, or proposed to be, relied on by the reporting entity is not ap- propriate for that entity.

This section is subject to section 33, which relates to the protection of personal information.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 36(4) (Aust) 25 Reliance on other reporting entities or persons in another 30 country Subject to the conditions in subsection (2), a reporting entity may rely on another person (who is not an agent) to conduct the customer due diligence procedures required for customer due diligence under this Act or regulations.
The conditions are that— (a) the person being relied on is either— (i) a reporting entity; or 35 (2) 30 (1) (2) 36 (b) (c) Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 31 (ii) a person who is resident in a country with suf- ficient anti-money laundering and countering financing of terrorism systems and measures in place and who is supervised or regulated for AML/CFT purposes; and 5 the person has a business relationship with the customer concerned; and the person has conducted relevant customer due dili- gence procedures to at least the standard required by this Act and regulations and has provided to the report- 10 ing entity— (i) relevant identity information before the reporting entity establishes a business relationship or an occasional transaction is conducted; and relevant verification information as soon as prac- 15 ticable, but no later than 5 working days, after the business relationship is established or the oc- casional transaction is conducted; and (ii) (d) (e) the person consents to conducting the customer due dili- gence procedures for the reporting entity and to provid- 20 ing all relevant information to the reporting entity; and any other conditions prescribed by regulations are com- plied with.
(3) Despite subsection (1), a reporting entity relying on a third party to conduct the customer due diligence procedure, and not 25 the person carrying out the customer due diligence procedure, is responsible for ensuring that customer due diligence is car- ried out in accordance with this Act.
31 Reliance on agents Subject to any conditions that may be prescribed by regula- 30 tions, a reporting entity may authorise a person to be its agent and rely on that agent to conduct the customer due diligence procedures and obtain any information required for customer due diligence under this Act or regulations.
37 Part 2 cl 32 Anti-Money Laundering and Countering Financing of Terrorism Bill 32 33 (1) Use of information obtained from third party conducting customer due diligence Information obtained by a third party conducting customer due diligence under sections 29 to 31 for a reporting entity may only be used by that third party for the purpose of complying 5 with this Act and regulations.
Protection of personal information and designated business groups This section applies to personal information that is either— (a) identity or verification information received for the pur- 10 poses of section 29(1)(a); or information received for the purposes of section 29(1)(b).
(b) (2) Any information supplied by any member of a designated business group to another member of that group must be 15 subject to privacy protections at least equivalent to those set out in privacy principles 5 to 11 in section 6 of the Privacy Act 1993.

Each member of the designated business group must agree, in writing, to comply with privacy principles 5 to 11 in section 20 6 of the Privacy Act 1993 or their equivalent if the member is resident overseas.
The entity that provides information to another member of its designated business group remains responsible for the use or disclosure of that information.
25 (3) (4) (5) A reporting entity may use or disclose information to which this section applies only as follows: (a) it may use identity and verification information received for the purposes of section 29(1)(a) in a suspicious transactions report: it may disclose information for the purposes of sec- tion 29(1)(b) to another member of the designated busi- ness group unless such disclosure is likely to result in a suspicious transaction report being filed in an overseas jurisdiction by the member to whom the information is 35 disclosed.
30 (b) 38 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 36 Prohibitions 34 Prohibitions if customer due diligence not conducted If, in relation to a customer, a reporting entity is unable to con- duct customer due diligence in accordance with this subpart, the reporting entity— (a) must not establish a business relationship with the cus- 5 tomer; and (b) must terminate any existing business relationship with the customer; and (c) must not carry out an occasional transaction with or for 10 the customer; and (d) must consider whether to make a suspicious transac- tions report; and (e) may disclose the possibility of making a suspicious transaction report only to a person referred to in sec- 15 tion 43(2).
35 Prohibition on false customer names and customer anonymity (1) A reporting entity must not,— (a) knowingly or recklessly, set up a facility for a customer 20 on the basis of customer anonymity: (b) without lawful justification or reasonable excuse, set up a facility for a customer under a false customer name.
(2) Subsection (1) does not apply to a facility— (a) that has a number or other identifier allocated to it and 25 the customer or the person who is authorised to act on behalf of the customer in respect of the facility has had their identity verified in accordance with the relevant customer due diligence requirements; or that has been set up for the Commissioner or for the 30 New Zealand Security Intelligence Service for law en- forcement purposes.
(b) 36 Prohibition on establishing or continuing business relationship involving shell bank (1) A reporting entity must not establish or continue a business re- 35 lationship with, or allow an occasional transaction to be con- ducted through it by,— 39 Part 2 cl 36 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) a shell bank; or a financial institution that has a correspondent banking relationship with a shell bank.
For the purposes of subsection (1), a shell bank is a corpor- ation that— (a) (b) is incorporated in a foreign country; and is authorised to carry on banking business in its country of incorporation; and does not have a physical presence in its country of in- corporation; and is not an affiliate of another corporation that— (i) (ii) (c) (d) is incorporated in a particular country; and is authorised to carry on banking business in its country of incorporation; and is sufficiently supervised and monitored in carry- 15 ing on its banking business; and has a physical presence in its country of incorp- oration.
5 10 (iii) (iv) For the purposes of paragraph (d) of the definition of shell bank in subsection (2), a corporation is affiliated with an- 20 other corporation only if— (a) the corporation is a subsidiary of the other corporation; or both corporations are under common effective control; or both corporations are declared to be affiliated in accord- ance with regulations (if any).
(b) (c) For the purposes of the definition of shell bank in subsec- tion (2), a corporation has a physical presence in a country if, and only if,— (a) the corporation carries on banking business at a place in that country; and banking operations of the corporation are managed and conducted from that place.
(b) Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 35 ss 15, 95 (Aust) 25 30 (2) (3) (4) 40 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 38 Subpart 2—Suspicious transaction reports 37 Reporting entities to report suspicious transactions (1) Despite any other enactment or any rule of law, but subject to section 39 of this Act and to section 44(4) of the Terrorism Suppression Act 2002, this section applies if— (a) a person conducts or seeks to conduct a transaction through a reporting entity; and the reporting entity has reasonable grounds to suspect that the transaction or proposed transaction is or may be— (i) (b) 5 10 (ii) (iii) (iv) (v) relevant to the investigation or prosecution of any person for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- 15 pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; or relevant to the investigation or prosecution of 20 a serious offence within the meaning of section 243(1) of the Crimes Act 1961.
(2) If this section applies, the reporting entity must, as soon as practicable, but no later than 3 working days after forming its suspicion, report the transaction or proposed transaction to the 25 Commissioner, in accordance with section 38.

(3) Nothing in subsection (2) requires any lawyer to disclose any privileged communication (as defined in section 39).
Compare: 1996 No 9 ss 15(1), 19(1) 38 (1) Nature of suspicious transaction report Except as provided in subsection (2), a report under section 37 must— (a) (b) (c) be in the prescribed form (if any); and contain the details prescribed by regulations; and contain a statement of the grounds on which the re- 35 porting entity holds the suspicions referred to in sec- tion 37(1)(b); and 30 41 Part 2 cl 39 Anti-Money Laundering and Countering Financing of Terrorism Bill (d) (e) be signed by a person authorised by the reporting entity to sign suspicious transaction reports (unless the report is forwarded by email or another similar means of com- munication); and be forwarded, in writing, to the Commissioner— (i) 5 by way of secure electronic transmission by a means specified or provided by the Commis- sioner for this purpose; or by another means (including, without limitation, by way of transmission by fax or email) that may 10 be agreed from time to time between the Com- missioner and the reporting entity concerned.
(ii) (2) However, if the urgency of the situation requires, a suspicious transaction report may be made orally to any Police employee authorised for the purpose by the Commissioner, but in any 15 such case the reporting entity must, as soon as practicable, but no later than 3 working days, forward to the Commissioner a suspicious transaction report that complies with the require- ments in subsection (1).
The Commissioner may confer the authority to receive a sus- 20 picious transaction report under subsection (2) on— (a) (b) (c) any specified Police employee; or Police employees of any specified rank or class; or any Police employee or Police employees for the time being holding any specified office or specified class of 25 offices.
(3) Compare: 1996 No 9 s 15(2)–(4) Privileged communication defined For the purposes of section 37(3), a communication is a priv- ileged communication only if— (a) it is a confidential communication, whether oral or writ- ten, passing between— (i) 30 a lawyer in his or her professional capacity and another lawyer in that capacity: a lawyer in his or her professional capacity and 35 his or her client: any person described in subparagraph (i) or (ii) and the agent of the other person described in (ii) (iii) 39 (1) 42 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 40 that paragraph, or between the agents of both the persons described, either directly or indirectly; and (b) (c) it is made or brought into existence for the purpose of obtaining or giving legal advice or assistance; and it is not made or brought into existence for the purpose of committing or furthering the commission of some illegal or wrongful act.
5 (2) However, where the information consists wholly or partly of, or relates wholly or partly to, the receipts, payments, income, 10 expenditure, or financial transactions of a specified person (whether a lawyer, his or her client, or any other person), it is not a privileged communication if it is contained in, or comprises the whole or part of, any book, account, statement, or other record prepared or kept by the lawyer in connection 15 with a trust account of the lawyer within the meaning of section 6 of the Lawyers and Conveyancers Act 2006.
For the purposes of this section, references to a lawyer include a firm in which he or she is a partner or is held out to be a partner.
Compare: 1996 No 9 s 19(2)–(4) 20 (3) Auditors may report suspicious transactions 40 (1) Despite any other enactment or any rule of law, this section ap- plies to a person who, in the course of carrying out the duties of that person’s occupation as an auditor, has reasonable grounds 25 to suspect, in relation to any transaction, that the transaction is— (a) (ab) (b) (c) relevant to the investigation or prosecution of any per- son for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 30 1975; or relevant to the enforcement of the Terrorism Suppres- sion Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 35 2009; or 43 Part 2 cl 41 Anti-Money Laundering and Countering Financing of Terrorism Bill (d) relevant to the investigation or prosecution of a ser- ious offence within the meaning of section 243(1) of the Crimes Act 1961.
(2) A person may report a transaction referred to in subsec- tion (1) to the Commissioner.

Compare: 1996 No 9 s 16 41 (1) Protection of persons reporting suspicious transactions Subsection (2) applies to a person who— (a) discloses or supplies any information in any suspicious transaction report; or supplies any information in connection with any suspi- cious transaction report, whether at the time the report is made or afterwards.
(b) (2) No civil, criminal, and disciplinary proceedings lie against a person to whom subsection (1) applies— (a) in respect of the disclosure or supply, or the manner of the disclosure or supply, by that person of the informa- tion referred to in that subsection; or for any consequences that follow from the disclosure or supply of that information.
(b) 5 10 15 20 (3) If any information is reported under section 40 to any Police employee by any person, no civil, criminal, or disciplinary proceedings lie against that person— (a) in respect of the disclosure or supply, or the manner of the disclosure or supply, of that information by that 25 person; or for any consequences that follow from the disclosure or supply of that information.

(b) (4) However, subsections (2) and (3) do not apply if the infor- mation was disclosed or supplied in bad faith.
(5) Nothing in this section applies in respect of proceedings for an offence under any of sections 90 to 95.
Compare: 1996 No 9 s 17 Immunity from liability for disclosure of information relating to money laundering transactions This section applies if— 42 (1) 44 30 35 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 43 (a) (b) (c) (d) (e) a person does any act that would constitute, or the per- son believes would constitute, an offence against sec- tion 243(2) or (3) of the Crimes Act 1961; and in respect of the doing of that act, that person would have, by virtue of section 244(a) of the Crimes Act 5 1961, a defence to a charge under section 243(2) or (3) of that Act; and that person discloses, to any Police employee, any in- formation relating to a money laundering transaction (within the meaning of section 243(4) of the Crimes Act 10 1961), being a money laundering transaction that con- stitutes (in whole or in part), or is connected with or related to, the act referred to in paragraph (a); and that information is so disclosed, in good faith, for the purpose of, or in connection with, the enforcement or 15 intended enforcement of any enactment or provision re- ferred to in section 244(a) of the Crimes Act 1961; and that person is otherwise under any obligation (whether arising by virtue of any enactment or any rule of law or any other instrument) to maintain secrecy in relation to, 20 or not to disclose, that information.
If this section applies, then, without limiting section 41 and despite that the disclosure would otherwise constitute a breach of that obligation of secrecy or non-disclosure, the disclosure by that person, to that Police employee, of that information is 25 not a breach of that obligation of secrecy or non-disclosure or (where applicable) of any enactment by which that obligation is imposed.
Compare: 1996 No 9 s 18 30 Disclosure of information relating to suspicious transaction reports This section and section 44 apply in respect of the following information: (a) (b) any suspicious transaction report: any information the disclosure of which will identify, or 35 is reasonably likely to identify, any person— (i) as a person who, in his or her capacity as an offi- cer or employee of a reporting entity, has han- 45 (2) 43 (1) Part 2 cl 43 Anti-Money Laundering and Countering Financing of Terrorism Bill dled a transaction in respect of which a suspi- cious transaction report was made; or as a person who has prepared a suspicious trans- action report; or as a person who has made a suspicious transac- 5 tion report: (ii) (iii) (c) any information that discloses, or is reasonably likely to disclose, the existence of a suspicious transaction re- port.
(2) A reporting entity must not disclose information to which this 10 section relates to any person except— (a) (b) (c) (d) (e) a Police employee who is authorised by the Commis- sioner to receive the information; or the reporting entity’s AML/CFT supervisor; or an officer or employee of the reporting entity, for any 15 purpose connected with the performance of that per- son’s duties; or a barrister or solicitor, for the purpose of obtaining legal advice or representation in relation to the matter; or another member of a designated business group of 20 which the reporting entity is a member to the extent necessary to decide whether to make a suspicious transaction report.
(3) A Police employee may only disclose information to which this section applies for law enforcement purposes.

25 (4) An AML/CFT supervisor may only disclose information to which this section applies to the Police for law enforcement purposes.

(4A) A person to whom a function or power has been delegated under section 130A may disclose information to which this 30 section applies only to the AML/CFT supervisor that made the delegation.
(5) A person (person A) referred to in subsection (2)(c) to whom disclosure of any information to which that subsection applies has been made must not disclose that information 35 except to another person of the kind referred to in that subsec- tion for the purpose of— (a) the performance of person A’s duties; or 46 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 45 (b) obtaining legal advice or representation in relation to the matter.
(6) A person referred to in subsection (2)(d) to whom disclosure of any information to which that subsection applies has been made must not disclose that information except to a person of 5 the kind referred to in that subsection for the purpose of giving legal advice or making representations in relation to the matter.

(7) Any other person who has information to which this section applies may only disclose that information to the Police for law enforcement purposes.
Compare: 1996 No 9 s 20 10 Disclosure of information in proceedings 44 (1) No person may disclose, in any judicial proceeding (within the meaning of section 108 of the Crimes Act 1961), any in- formation to which this section applies unless the Judge or, as 15 the case requires, the person presiding at the proceeding is sat- isfied that the disclosure of the information is necessary in the interests of justice.
(2) Nothing in this section prohibits the disclosure of any informa- tion for the purposes of the prosecution of any offence against 20 section 91 or 92.
Compare: 1996 No 9 s 21 45 Disclosure of personal information relating to employees or senior managers An AML/CFT supervisor that has, in the performance and ex- 25 ercise of its functions and powers under this Act, obtained per- sonal information about employees or senior managers may disclose that information to another government agency for the following purposes if the AML/CFT supervisor is satisfied that the agency has a proper interest in receiving the informa- 30 tion: (a) (b) law enforcement purposes: the detection, investigation, and prosecution of any of- fence under the following Acts: the Companies Act 1993: (i) the Financial Advisers Act 2008: (ii) 35 47 Part 2 cl 46 Anti-Money Laundering and Countering Financing of Terrorism Bill (iii) (iv) (v) (vi) (vii) the Financial Service Providers (Registration and Dispute Resolution) Act 2008: the Gambling Act 2003: the Reserve Bank of New Zealand Act 1989: the Securities Act 1978: the Securities Markets Act 1988.
5 Subpart 3—Record keeping 46 (1) Obligation to keep transaction records In relation to every transaction that is conducted through a reporting entity, the reporting entity must keep those records 10 that are reasonably necessary to enable that transaction to be readily reconstructed at any time.
(2) Without limiting subsection (1), records must contain the following information: (a) (b) 15 the nature of the transaction: the amount of the transaction and the currency in which it was denominated: the date on which the transaction was conducted: the parties to the transaction: if applicable, the facility through which the transaction 20 was conducted, and any other facilities (whether or not provided by the reporting entity) directly involved in the transaction: the name of the officer or employee or agent of the re- porting entity who handled the transaction, if that offi- 25 cer, employee, or agent— (i) has face-to-face dealings in respect of the trans- action with any of the parties to the transaction; and has formed a suspicion (of the kind referred to in 30 section 37(1)(b)) about the transaction: any other information prescribed by regulations.
(ii) (c) (d) (e) (f) (g) (3) A reporting entity must retain the records kept by that report- ing entity, in accordance with this section, in relation to a trans- action for— (a) a period of at least 5 years after the completion of that transaction; or 35 48 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 47 (b) any longer period that the AML/CFT supervisor for the reporting entity, or the Commissioner, specifies.
Compare: 1996 No 9 s 29 47 (1) Obligation to keep identity and verification records In respect of each case in which a reporting entity is required, 5 under subpart 1 of this Part, to identify and verify the iden- tity of a person, the reporting entity must keep those records that are reasonably necessary to enable the nature of the evi- dence used for the purposes of that identification and verifica- tion to be readily identified at any time.
10 (2) Without limiting subsection (1), those records may com- prise— (a) (b) a copy of the evidence so used; or if it is not practicable to retain that evidence, any in- formation as is reasonably necessary to enable that evi- 15 dence to be obtained.
(3) A reporting entity must retain the records kept by that report- ing entity for,— (a) (b) (c) in the case of records relating to the identity and verifi- cation of the identity of a person in relation to establish- 20 ing a business relationship, a period of at least 5 years after the end of that business relationship; or in the case of records relating to the identity and verifi- cation of the identity of a person in relation to conduct- ing an occasional transaction, a period of at least 5 years 25 after the completion of that occasional transaction; or in the case of records relating to the identity and veri- fication of the identity of an originator in relation to a wire transfer,— (i) if the wire transfer is conducted by a customer 30 with whom the reporting entity has a business relationship, a period of at least 5 years after the end of that business relationship; or if the wire transfer is an occasional transaction, a period of at least 5 years after the completion of 35 the wire transfer.
(ii) Compare: 1996 No 9 s 30 49 Part 2 cl 48 Anti-Money Laundering and Countering Financing of Terrorism Bill Obligation to keep other records 48 (1) A reporting entity must keep the following records in addition (ab) (b) to the records referred to in sections 46 and 47: (a) 5 records that are relevant to the establishment of the busi- ness relationship; and records relating to risk assessments, AML/CFT pro- grammes, and audits; and any other records (for example, account files, business correspondence, and written findings) relating to, and obtained during the course of, a business relationship 10 that are reasonably necessary to establish the nature and purpose of, and activities relating to, the business rela- tionship.
(2) The records must be kept in accordance with section 49 for a period of at least 5 years after the end of the business rela- 15 tionship.

(3) A reporting entity must make records relating to risk assess- ments, AML/CFT programmes, and audits available to its AML/CFT supervisor on request.
Compare: 1996 No 9 s 31 20 49 How records to be kept Records required by this subpart to be kept by a reporting en- tity must— (a) be kept either in written form in the English language, or so as to enable the records to be readily accessible 25 and readily convertible into written form in the English language; and be kept in the manner prescribed by regulations (if any).
(b) Compare: 1996 No 9 s 32 50 When records need not be kept (1) Nothing in this subpart requires the retention of any records kept by a reporting entity that has been liquidated and finally dissolved except as provided in subsection (2).
The High Court may, in relation to a reporting entity that is being or has been liquidated, make an order requiring that any 35 (2) 30 50 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 53 or all of the records referred to in sections 47 and 48 be kept for any period it thinks fit.
Compare: 1996 No 9 s 33 51 (1) Destruction of records Subject to subsection (2), a reporting entity must take all 5 practicable steps to ensure that every record retained by that re- porting entity under this subpart, and every copy of that record, is destroyed as soon as practicable after the expiry of the period for which the reporting entity is required to retain that record.
(2) Nothing in this section requires the destruction of any record, 10 or any copy of any record, in any case where there is a lawful reason for retaining that record.
(3) Without limiting subsection (2), there is a lawful reason for retaining a record if the retention of that record is necessary— (a) in order to comply with the requirements of any other 15 enactment; or to enable a reporting entity to carry on its business; or for the purposes of the detection, investigation, or pros- ecution of any offence.
(b) (c) Compare: 1996 No 9 s 34 52 Other laws not affected Nothing in this subpart limits or affects any other enactment that requires any reporting entity to keep or retain a record.
Compare: 1996 No 9 s 35 Subpart 4—Compliance with AML/CFT requirements 20 25 53 Reporting entity must have AML/CFT programme and AML/CFT compliance officer (1) A reporting entity must establish, implement, and maintain a compliance programme (an AML/CFT programme) that 30 includes internal procedures, policies, and controls to— (a) detect money laundering and the financing of terrorism; and (b) manage and mitigate the risk of money laundering and financing of terrorism.
35 51 Part 2 cl 54 Anti-Money Laundering and Countering Financing of Terrorism Bill (2A) (2) A reporting entity must designate an employee as an AML/CFT compliance officer to administer and maintain its AML/CFT programme.

In the case of a reporting entity that does not have employ- ees, the reporting entity must appoint a person to act as its 5 AML/CFT compliance officer.

The AML/CFT compliance officer must report to a senior manager of the reporting entity.
(3) 54 Minimum requirements for AML/CFT programmes A reporting entity’s AML/CFT programme must be based on 10 the risk assessment undertaken in accordance with section 55 and include adequate and effective procedures, policies, and controls for— (a) (b) (c) (d) (e) (f) (h) vetting— (i) (ii) (iii) senior managers: the AML/CFT compliance officer: any other employee that is engaged in AML/CFT related duties; and training on AML/CFT matters for the following em- ployees: (i) (ii) (iii) senior managers: the AML/CFT compliance officer: any other employee that is engaged in AML/CFT related duties; and 15 20 complying with customer due diligence requirements 25 (including ongoing customer due diligence and account monitoring); and reporting suspicious transactions; and record keeping; and setting out what the reporting entity needs to do, or con- 30 tinue to do, to manage and mitigate the risks of money laundering and the financing of terrorism; and examining, and keeping written findings relating to,— (i) (ii) complex or unusually large transactions; and unusual patterns of transactions that have no ap- 35 parent economic or visible lawful purpose; and any other activity that the reporting entity regards as being particularly likely by its nature to be (iii) 52 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 55 (i) (j) (k) (l) related to money laundering or the financing of terrorism; and monitoring, examining, and keeping written findings re- lating to business relationships and transactions from or in countries that do not have or have insufficient 5 anti-money laundering or countering financing of ter- rorism systems in place and have additional measures for dealing with or restricting dealings with such coun- tries; and preventing the use, for money laundering or the finan- 10 cing of terrorism, of products (for example, the mis- use of technology) and transactions (for example, non- face-to-face business relationships or transactions) that might favour anonymity; and determining when enhanced customer due diligence is 15 required and when simplified customer due diligence might be permitted; and providing when a person who is not the reporting entity may, and setting out the procedures for the person to, conduct the relevant customer due diligence on behalf 20 of the reporting entity; and (m) monitoring and managing compliance with, and the in- ternal communication of and training in, those proced- ures, policies, and controls.
55 (1) (2) 25 30 Risk assessment Before conducting customer due diligence or establishing an AML/CFT programme, a reporting entity must first undertake an assessment of the risk of money laundering and the finan- cing of terrorism (a risk assessment) that it may reasonably expect to face in the course of its business.
In assessing the risk, the reporting entity must have regard to the following: (a) (b) (c) the nature, size, and complexity of its business; and the products and services it offers; and the methods by which it delivers products and services 35 to its customers; and the types of customers it deals with; and the countries it deals with; and (d) (e) 53 Part 2 cl 56 Anti-Money Laundering and Countering Financing of Terrorism Bill (f) (g) (h) the institutions it deals with; and any applicable guidance material produced by AML/CFT supervisors or the Commissioner relating to risk assessments; and any other factors that may be provided for in regula- 5 tions.
(3) The risk assessment must be in writing and— (a) (b) (c) identify the risks faced by the reporting entity in the course of its business; and describe how the reporting entity will ensure that the 10 assessment remains current; and enable the reporting entity to determine the level of risk involved in relation to relevant obligations under this Act and regulations.
56 Review and audit of risk assessment and AML/CFT programme (1) A reporting entity must review its risk assessment and AML/CFT programme to— (a) (b) ensure the risk assessment and AML/CFT programme remain current; and identify any deficiencies in the effectiveness of the risk assessment and the AML/CFT programme; and (c) make any changes to the risk assessment or AML/CFT programme identified as being necessary under para- graph (b).
15 20 25 (2) A reporting entity must ensure its risk assessment and AML/CFT programme are audited every 2 years or at any other time at the request of the relevant AML/CFT supervisor.

The audit must be carried out by an independent person ap- pointed by the reporting entity who is appropriately qualified 30 to conduct the audit.
(3) (a) (4) A person appointed to conduct an audit is not required to be— a chartered accountant within the meaning of section 19 of the Institute of Chartered Accountants of New Zealand Act 1996; or qualified to undertake financial audits.
(b) 35 54 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 58 (5) A person appointed to conduct an audit must not have been involved in— (a) the establishment, implementation, or maintenance of the reporting entity’s AML/CFT programme: the undertaking of the reporting entity’s risk assess- 5 ment.

(b) (6) The audit of the risk assessment is limited to an audit of whether the reporting entity’s risk assessment fulfils the requirements in section 55(3).
(7) A reporting entity must provide a copy of any audit to its 10 AML/CFT supervisor on request.

57 (1) Annual AML/CFT report The reporting entity must prepare an annual report on its risk assessment and AML/CFT programme.

(2) An annual report must— 15 (a) (b) be in the prescribed form; and take into account the results and implications of the audit required by section 56(2); and contain any information prescribed by regulations.
(c) The reporting entity must provide the annual report to its 20 AML/CFT supervisor at a time appointed by the AML/CFT supervisor.

The AML/CFT supervisor must give the reporting entity rea- sonable notice of the requirement to provide the annual report.
(3) (4) 25 58 Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements (1) A reporting entity must ensure that its branches and sub- sidiaries that are in a foreign country apply, to the extent permitted by the law of that country, measures broadly equiva- lent to those set out in this Act and regulations with regard to 30 the requirements for customer due diligence (including on- going customer due diligence), risk assessments, AML/CFT programmes, and record keeping.
If the law of the foreign country does not permit the application of those equivalent measures by the branch or the subsidiary 35 located in that country, the reporting entity must— (2) 55 Part 2 cl 59 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) inform its AML/CFT supervisor accordingly; and take additional measures to effectively handle the risk of a money laundering offence and the financing of ter- rorism.
(3) A reporting entity must communicate (where relevant) the 5 policies, procedures, and controls that it establishes, imple- ments, and maintains in accordance with this subpart to its branches and subsidiaries that are outside New Zealand.
Subpart 5—Codes of practice 59 Interpretation In this Part, unless the context otherwise requires,— code of practice means a code of practice approved by the responsible Minister under section 61, as amended from time to time proposed code of practice means a document prepared under 15 section 60(1).
10 60 AML/CFT supervisors to prepare codes of practice for relevant sectors (1) An AML/CFT supervisor must, if directed to do so by the Min- ister responsible for that AML/CFT supervisor (the respon- 20 sible Minister), prepare— (a) 1 or more codes of practice for the sector of activity of the reporting entities for which it is the supervisor under section 127 or in respect of different reporting entities specified by the responsible Minister: an instrument that amends a code of practice or revokes the whole or any provision of a code of practice pre- pared under paragraph (a).
(b) 25 (2) The purpose of a code of practice is to provide a statement of practice that assists reporting entities to comply with their 30 obligations under this Act and regulations.
(a) (3) A direction under subsection (1) may (without limitation)— relate generally to the obligations imposed on the rele- vant reporting entities by or under this Act or regula- tions or specify particular aspects of those obligations 35 that are to be covered by the code of practice: 56 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 61 (b) (c) (d) specify the amendments to be made or their intended effect, and specify the extent of the revocation to be made: indicate the date by which the responsible Minister wishes the code of practice to be provided to him or 5 her: include details about the AML/CFT supervisor is required to provide under section 61(1)(a).
the recommendation that (4) An AML/CFT supervisor must comply with a direction under 10 subsection (1) as soon as practicable.

(5) No code of practice has legal effect until approved by the re- sponsible Minister under section 61(6).
61 (1) (2) (3) Procedure for approval and publication of codes of practice The responsible Minister must not approve a code of practice prepared by an AML/CFT supervisor unless— (a) the AML/CFT supervisor has made a recommendation that the Minister should approve the code of practice; and the AML/CFT supervisor has consulted the persons and organisations that the Minister thinks appropriate, hav- ing regard to the subject matter of the proposed code of practice.
(b) 15 20 In consulting under subsection (1)(b), the AML/CFT super- 25 visor must ensure that— (a) a copy of the proposed code of practice or a summary of its contents, in hard copy or electronic format, is pro- vided to the persons and organisations being consulted; and the persons and organisations being consulted have at least 20 working days to make submissions or repre- sentations about the proposed code of practice.
The responsible Minister may direct the AML/CFT supervisor to reconsider any aspect of the proposed code of practice and to 35 make any amendments that the Minister considers necessary.
(b) 30 (4) Despite subsection (3),— 57 Part 2 cl 62 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) if the AML/CFT supervisor does not amend the pro- posed code of practice as directed by the Minister or within the time specified by the Minister, the Minister may make those amendments: the Minister may, after consultation with the AML/CFT 5 supervisor, make any further amendments to the pro- posed code of practice that he or she considers neces- sary.
(5) The responsible Minister must— (a) (b) (c) approve the proposed code of practice as prepared by 10 the AML/CFT supervisor; or approve the proposed code of practice as amended by the AML/CFT supervisor; or approve the proposed code of practice as amended by the Minister after consultation with the AML/CFT 15 supervisor.
(6) The responsible Minister approves a code of practice by notice in the Gazette, and the notice— (a) must either set out the code of practice or state where (b) copies of the code of practice in hard copy or electronic 20 format may be obtained or viewed: is not a regulation for the purposes of the Acts and Regulations Publication Act 1989, but is a regulation for the purposes of the Regulations (Disallowance) Act 1989.
25 Amendment and revocation of codes of practice 62 (1) A code of practice may be amended or revoked in the same manner as that in which it was made.

Sections 60, 61, 63, and 64 apply with the necessary modi- fications to the amendment or revocation of a code of practice.
30 Proof of codes of practice Publication in the Gazette of a notice under section 61(6) is conclusive evidence that the requirements of sections 61(1) to (5) and 62 have been complied with in respect of the ap- proval specified in the notice.
35 (2) 63 58 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2 cl 65 Legal effect of codes of practice 64 (1) A reporting entity complies with an obligation imposed on it by or under this Act or regulations by— (a) complying with those provisions of a code of practice that state a means of satisfying the obligation; or complying with the obligation by some other equally effective means.
(b) 5 (3) (2) However, a reporting entity may not rely on subsection (1)(b) as a defence to an act or omission on its part unless it has, by notice in writing given before the act or omission 10 occurred, advised the AML/CFT supervisor that it has opted out of compliance with the code of practice and intends to satisfy its obligations by some other equally effective means.
If a person is charged with an offence in respect of a failure to comply with any provision of this Act, a court must, in 15 determining whether that person has failed to comply with the provision, have regard to any code of practice in force under section 61(6) at the time of the alleged failure relating to matters of the kind to which the provision relates.
If an application for an injunction against a person has been 20 made under this Act, a court must, in determining whether to grant the injunction, have regard to any code of practice in force under section 61(6).
If an application for a pecuniary penalty against a person has been made under this Act, a court must, in determining 25 whether to impose a pecuniary penalty, have regard to any code of practice in force under section 61(6) at the time the person engaged in conduct that constituted the relevant civil liability act.
(5) (4) Subpart 6—Cross-border transportation of cash Reports about movement of cash into or out of New Zealand 65 30 (1) A person must not move cash into or out of New Zealand if— (a) the total amount of the cash is more than the applicable 35 threshold value; and 59 Part 2 cl 66 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) (c) the person has not given a report in respect of the move- ment of that cash in accordance with this subpart; and the movement of that cash is not exempted under this Act or regulations (if any).
For the purposes of this Act, a person moves cash into New 5 Zealand if the person brings or sends the cash into New Zealand.

For the purposes of this Act, a person moves cash out of New Zealand if the person takes or sends the cash out of New Zealand.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 ss 53(3), 57(2), 58 (Aust) 10 Reports about receipt of cash from outside New Zealand A person must not receive cash moved to the person from out- side New Zealand if— (a) the total amount of the cash is more than the applicable threshold value; and the person has not given a report in respect of the move- ment of that cash in accordance with this subpart; and the movement of that cash is not exempted under this 20 Act or regulations (if any).
(b) (c) 15 Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 55(3) (Aust) Reporting requirements A report under this subpart must— (a) (b) (c) be in writing in the prescribed form; and contain the prescribed information; and be completed in accordance with regulations (if any); and be provided to a Customs officer,— (i) in the case of accompanied cash, at the same time as a departure card is presented in accordance with section 126(2) of the Immigration Act 1987: in the case of unaccompanied cash, before the cash leaves New Zealand.
(ii) (d) Compare: 1996 No 9 s 37; Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 55(5) (Aust) 25 30 35 (2) (3) 66 67 60 68 (1) (2) (3) (4) Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 69 Information to be forwarded to Commissioner If a report is made to a Customs officer under this subpart, that officer must, as soon as practicable, forward the report to the Commissioner.
If, in the course of conducting a search under this Act, a Cus- 5 toms officer discovers any cash in respect of which a report is required to be made under this subpart but has not been made, that officer must, as soon as practicable, report the details of the search, and of the cash, to the Commissioner.

Every report made under subsection (2) must be in the form 10 that the Commissioner may determine after consultation with the chief executive of the New Zealand Customs Service.
The chief executive of the New Zealand Customs Service must— (a) cause a record to be made and kept of— (i) 15 each occasion on which a cash report is made to a Customs officer; and the details of the identity of the person making the cash report; and the date on which the cash report is made; and (b) (iii) ensure that the record is retained for a period of not less than 1 year after the date on which the cash report is made.
Compare: 1996 No 9 s 42 (ii) Part 3 Enforcement Subpart 1—General provisions relating to Part Proceedings for civil penalties 69 When and how civil penalty proceedings brought (1) An application for a civil penalty under this Part may be made no later than 6 years after the conduct giving rise to the liability to pay the civil penalty occurred.
In proceedings for a civil penalty under this Part,— (a) the standard of proof is the standard of proof that applies 35 in civil proceedings; and (2) 20 25 30 61 Part 3 cl 70 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) the relevant AML/CFT supervisor may, by order of the court, obtain discovery and administer interrogatories.
Relationship between civil penalty and criminal proceedings 70 (1) (2) Relationship between concurrent civil penalty proceedings 5 and criminal proceedings Criminal proceedings for an offence under this Part may be commenced against a person in relation to particular conduct whether or not proceedings for a civil penalty under this Part have been commenced against the person in relation to the 10 same or substantially the same conduct.
Proceedings under this Part for a civil penalty against a person in relation to particular conduct are stayed if criminal proceed- ings against the person are or have been commenced for an offence under this Part in relation to the same or substantially 15 the same conduct.

(3) After the criminal proceedings referred to in subsection (2) have been completed or withdrawn, a person may apply to have the stay lifted on the civil penalty proceedings referred to in that subsection.
20 One penalty only rule If civil penalty or criminal proceedings under this Part are brought against a person in relation to particular conduct, a court may not impose a penalty (whether civil or criminal) on the person if a court has already imposed a penalty under this 25 Part in proceedings relating to the same or substantially the same conduct.
If a person is or may be liable to more than 1 civil penalty under this Part in respect of the same or substantially the same conduct, civil penalty proceedings may be brought against the 30 person for more than 1 civil penalty, but the person may not be required to pay more than 1 civil penalty in respect of the same or substantially the same conduct.
71 (1) (2) 62 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 72B 72 (1) Restriction on use of evidence given in civil penalty proceedings Evidence of information given, or evidence of production of documents, by a person is not admissible in criminal proceed- ings against the person for an offence under this Part or any 5 other enactment if— (a) the person previously gave the evidence or produced the documents in civil penalty proceedings under this Part against him or her, whether or not a civil penalty was imposed; and the proceedings for the civil penalty related to conduct that was the same or substantially the same as the con- duct constituting the offence.
(b) 10 (2) This section does not apply to criminal proceedings in respect of the falsity of the evidence given by the person in the pro- 15 ceedings for the civil penalty.
72A Protection for AML/CFT supervisors Immunities No civil or criminal proceedings may be brought against an AML/CFT supervisor or a person who is or has been an of- 20 ficer, employee, member of, or member of the board of, an AML/CFT supervisor for anything done or omitted to be done in the course of the performance or exercise of the AML/CFT supervisor’s functions or powers under this Act unless it is shown that the AML/CFT supervisor or the person concerned 25 acted in bad faith.
72B Protection for reporting entities, officers, etc, acting in compliance with this Act No reporting entity, or person who is, or has been, an officer, an employee, or a member of the governing body of the reporting 30 entity, or person appointed under section 53(2A) is crimin- ally or civilly liable for any action taken in order to comply with this Act or regulations if the action— (a) was taken in good faith; and (b) was reasonable in the circumstances.
35 63 Part 3 cl 76 Anti-Money Laundering and Countering Financing of Terrorism Bill Subpart 2—Civil liability 76 Meaning of civil liability act In this Part, a civil liability act occurs when a reporting en- tity fails to comply with any of the AML/CFT requirements, including, without limitation, when the reporting entity— (a) 5 fails to conduct customer due diligence as required by subpart 1 of Part 2: fails to adequately monitor accounts and transactions: enters into or continues a business relationship with a person who does not produce or provide satisfactory 10 evidence of the person’s identity: enters into or continues a correspondent banking rela- tionship with a shell bank: fails to keep records in accordance with the require- ments of subpart 3 of Part 2: fails to establish, implement, or maintain an AML/CFT programme: fails to ensure that its branches and subsidiaries comply with the relevant AML/CFT requirements.
15 (b) (c) (d) (e) (f) (g) 20 Possible responses to civil liability act If a civil liability act is alleged to have occurred, the relevant AML/CFT supervisor may do 1 or more of the following: issue a formal warning under section 78: (a) accept an enforceable undertaking under section 79 (b) and seek an order in the court for breach of that under- 25 taking under section 80: seek an injunction from the High Court under section 83 or 85: apply to the court for a pecuniary penalty under section 88.
(d) (c) 30 Formal warnings Formal warnings The relevant AML/CFT supervisor may issue 1 or more formal warnings to a person if the AML/CFT supervisor has reason- able grounds to believe that that person has engaged in conduct 35 that constituted a civil liability act.

77 78 (1) 64 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 81 (2) A formal warning must be— (a) (b) in the prescribed form; and issued in the manner specified in regulations (if any).
79 (1) (2) 80 (1) (2) 81 Enforceable undertakings Enforceable undertakings The relevant AML/CFT supervisor may accept a written undertaking given by a person in connection with compliance with this Act or regulations (if any).

The person may withdraw or vary the undertaking at any time, but only with the consent of the relevant AML/CFT supervisor.
10 5 Enforcement of undertakings If the relevant AML/CFT supervisor considers that a person who gave an undertaking under section 79 has breached 1 or more of its terms, the relevant AML/CFT supervisor may apply to the court for an order under subsection (2).
If the court is satisfied that the person has breached 1 or more of the terms of the undertaking, the court may make any or all of the following orders: (a) 15 an order directing the person to comply with any of the terms of the undertaking: an order directing the person to pay to the AML/CFT supervisor an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach: any order that the court considers appropriate directing 25 the person to compensate any other person who has suf- fered loss or damage as a result of the breach.
20 (b) (c) Assessment of compensation for breach of undertakings For the purposes of section 80(2)(c), in determining whether another person (person A) has suffered loss or damage as a 30 result of the breach, and in assessing the amount of compen- sation payable, the court may have regard to the following: (a) the extent to which any expenses incurred by person A are attributable to dealing with the breach: 65 Part 3 cl 82 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) (c) (d) (e) the effect of the breach on person A’s ability to carry on business or other activities: any damage to the reputation of person A’s business that is attributable to dealing with the breach: any loss of business opportunities suffered by person A 5 as a result of dealing with the breach: any other matters that the court considers relevant.
Injunctions Powers of High Court not affected The powers in sections 83 to 87 are in addition to, and do 10 not derogate from, any other powers of the High Court relating to the granting of injunctions.
Performance injunctions The High Court may, on the application of the relevant AML/CFT supervisor, grant an injunction requiring a person 15 to do an act or thing if— (a) that person has refused or failed, or is refusing or failing, or is proposing to refuse or fail, to do that act or thing; and the refusal or failure was, is, or would be a civil liability 20 act.

(b) 82 83 (1) (2) The court may rescind or vary an injunction granted under this section.
84 When High Court may grant performance injunctions (1) The High Court may grant an injunction requiring a person to 25 do an act or thing if— (a) it is satisfied that the person has refused or failed to do that act or thing; or it appears to the court that, granted, it is likely that the person will refuse or fail to 30 do that act or thing.
if an injunction is not (b) Subsection (1)(a) applies whether or not it appears to the court that the person intends to refuse or fail again, or to con- tinue to refuse or fail, to do that act or thing.
Subsection (1)(b) applies— 35 (2) (3) 66 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 86 (a) whether or not the person has previously refused or failed to do that act or thing; or (b) where there is an imminent danger of substantial dam- age to any other person if that person refuses or fails to do that act or thing.
5 85 (1) (2) Restraining injunctions The High Court may, on the application of the relevant AML/CFT supervisor, grant an injunction restraining a person from engaging in conduct that constitutes or would constitute a contravention of a provision of this Act.

The court may rescind or vary an injunction granted under this section.
10 86 When High Court may grant restraining injunctions and (1) (2) (3) (4) interim injunctions The High Court may grant an injunction restraining a person 15 from engaging in conduct of a particular kind if— (a) it is satisfied that the person has engaged in conduct of that kind; or it appears to the court that, granted, it is likely that the person will engage in con- 20 duct of that kind.
if an injunction is not (b) The court may grant an interim injunction restraining a person from engaging in conduct of a particular kind if, in its opinion, it is desirable to do so.

Subsections (1)(a) and (2) apply whether or not it appears to 25 the court that the person intends to engage again, or to continue to engage, in conduct of that kind.
Subsections (1)(b) and (2) apply— (a) whether or not the person has previously engaged in conduct of that kind; or 30 (b) where there is an imminent danger of substantial dam- age to any other person if that person engages in conduct of that kind.
67 Part 3 cl 87 Anti-Money Laundering and Countering Financing of Terrorism Bill 87 (1) Undertaking as to damages not required by AML/CFT supervisor If the relevant AML/CFT supervisor applies to the High Court for the grant of an interim injunction under this subpart, the court must not, as a condition of granting an interim injunction, 5 require the AML/CFT supervisor to give an undertaking as to damages.
(2) However, in determining the AML/CFT supervisor’s applica- tion for the grant of an interim injunction, the court must not take into account that the AML/CFT supervisor is not required 10 to give an undertaking as to damages.

Pecuniary penalties Pecuniary penalties for civil liability act 88 (1) On the application of the relevant AML/CFT supervisor, the in the case of an individual, $100,000; and in the case of a body corporate, $1 million.
High Court may order a person to pay a pecuniary penalty to 15 the Crown, or to any other person specified by the court, if the court is satisfied that that person has engaged in conduct that constituted a civil liability act.
For a civil liability act specified in section 76(b), (c), (d), or (g), the maximum amount of a pecuniary penalty under this 20 Act is,— (a) (b) For a civil liability act specified in section 76(a), (e), or (f), the maximum amount of a pecuniary penalty under this Act 25 is,— (a) (b) In determining an appropriate pecuniary penalty, the court must have regard to all relevant matters, including— (a) (b) the nature and extent of the civil liability act; and the likelihood, nature, and extent of any damage to the integrity or reputation of New Zealand’s financial sys- tem because of the civil liability act; and the circumstances in which the civil liability act oc- 35 curred; and in the case of an individual, $200,000; and in the case of a body corporate, $2 million.
(c) 30 (2) (3) (4) 68 89 90 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 90 (d) whether the person has previously been found by the court in proceedings under this Act to have engaged in any similar conduct.
Subpart 3—Offences Offence and penalties relating to civil liability act Offence and penalties for civil liability act A reporting entity that engages in conduct constituting a civil liability act commits an offence if the reporting entity engages in that conduct knowingly or recklessly.
5 10 Offences relating to suspicious transaction reports Failing to report suspicious transaction A reporting entity commits an offence if— (a) (b) a transaction is conducted or is sought to be conducted 15 through the reporting entity; and the reporting entity has reasonable grounds to suspect that the transaction or the proposed transaction is or may be— (i) relevant to the investigation or prosecution of any 20 person for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; and relevant to the investigation or prosecution of a serious offence within the meaning of section 30 243(1) of the Crimes Act 1961; and 25 (ia) (ii) (iii) (iv) (c) the reporting entity fails to report the transaction or the proposed transaction to the Commissioner as soon as practicable, but no later than 3 working days, after form- ing that suspicion.
35 Compare: 1996 No 9 s 22(1) 69 Part 3 cl 91 Anti-Money Laundering and Countering Financing of Terrorism Bill 91 Providing false or misleading information in connection with suspicious transaction report A person commits an offence who, in making a suspicious transaction report or in supplying information in connection with that report,— (a) makes any statement that the person knows is false or (b) misleading in a material particular; or omits from any statement any matter or thing without which the person knows that the statement is false or misleading in a material particular.
5 10 Compare: 1996 No 9 s 22(3) 92 Unlawful disclosure of suspicious transaction report (1) A person commits an offence who contravenes section 43— for the purpose of obtaining, directly or indirectly, an advantage or a pecuniary gain for that person or any 15 other person; or (a) (b) with intent to prejudice any investigation into— (i) (ii) the commission or possible commission of a money laundering offence; or the financing of terrorism or the possible finan- 20 cing of terrorism.
(2) A person commits an offence who— (a) (b) (c) (d) is an officer or employee or a former officer or em- ployee of a reporting entity, a person appointed as an AML/CFT compliance officer under section 53(2A), 25 or an auditor for a reporting entity; and has become aware, or became aware, in the course of that person’s duties as such an officer or employee, that any investigation into any transaction or proposed trans- action that is the subject of a suspicious transaction re- 30 port is being, or may be, conducted by the Police; and knows that he or she is not legally authorised to disclose the information; and discloses that information to any other person— (i) for the purpose of obtaining, directly or indi- 35 rectly, an advantage or a pecuniary gain for that person or any other person; or (ii) with intent to prejudice any investigation into— 70 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 96 (A) (B) the commission or possible commission of a money laundering offence; or the financing of terrorism or the possible financing of terrorism.
Compare: 1996 No 9 s 22(4), (5) Failure to keep or retain adequate records relating to suspicious transaction A reporting entity commits an offence if the reporting entity fails to keep or retain adequate records relating to a suspicious transaction.

Obstruction of investigation relating to suspicious transaction report A person commits an offence if the person obstructs any in- vestigation relating to any suspicious transaction report with- out lawful justification or excuse.
Contravention of section 44(1) A person commits an offence if the person acts in contraven- tion of section 44(1) without lawful justification or excuse.
Compare: 1996 No 9 s 22(8) Defence It is a defence to a charge against a person in relation to a contravention of, or a failure to comply with, Part 2 if the defendant proves that— (a) the defendant took all reasonable steps to ensure that the defendant complied with that Part; or in the circumstances of the particular case, the defen- dant could not reasonably have been expected to ensure that the defendant complied with that Part.
(b) for the purposes of subsection (1)(a), In determining, whether or not a defendant took all reasonable steps to comply 30 with Part 2, the court must have regard to— (a) the nature of the reporting entity and the activities in which it engages; and 71 93 94 95 96 (1) (2) Part 3 cl 97 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) the existence and adequacy of any procedures estab- lished by the reporting entity to ensure compliance with that subpart.
Except as provided in subsection (4), subsection (1) does not apply unless, within 21 days after the service of the sum- 5 mons, or within such further time as the court may allow, the defendant has delivered to the prosecutor a written notice— (a) stating that the defendant intends to rely on the defence referred to in subsection (1); and specifying the reasonable steps that the defendant will 10 claim to have taken.
(b) In any such prosecution, evidence that the defendant took a step not specified in the written notice required by subsection (3) is not, except with the leave of the court, admissible for the purpose of supporting a defence under subsection (1).
Compare: 1996 No 9 s 23 15 Time limit for prosecution of offences relating to civil liability act and suspicious transaction reports Despite anything in section 14 of the Summary Proceedings Act 1957, any information in respect of an offence under any 20 of sections 89 to 95 may be laid at any time within 3 years after the time when the matter of the information arose.
Penalties A reporting entity or person who commits an offence under any of sections 89 to 95 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) (ii) in the case of a body corporate, a fine of up to $5 million.
30 a term of imprisonment of not more than 2 years: a fine of up to $300,000; and (b) 25 (3) (4) 97 98 72 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 103 Other offences relating to non-compliance with AML/CFT requirements 99 Structuring transaction to avoid application of AML/CFT requirements A person commits an offence if the person structures a trans- 5 action (other than a transaction that involves the cross-border transportation of cash) to avoid the application of any AML/CFT requirements.
100 Offence to obstruct AML/CFT supervisor A person commits an offence if the person wilfully obstructs 10 any AML/CFT supervisor in the exercise of any power con- ferred or the performance of any function imposed on that supervisor by this Act.
101 Offence to provide false or misleading information to AML/CFT supervisor A person commits an offence if, without reasonable excuse, the person provides information to an AML/CFT supervisor knowing that information to be false or misleading in any ma- terial respect.
15 102 Time limit for prosecution of offences relating to 20 non-compliance with AML/CFT requirements Despite anything in section 14 of the Summary Proceedings Act 1957, any information in respect of an offence under any of sections 89 to 95 may be laid at any time within 3 years after the time when the matter of the information arose.
103 Penalties (1) A person who commits an offence under section 99 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) (ii) in the case of a body corporate, a fine of up to $5 million.
a term of imprisonment of not more than 2 years: a fine of up to $300,000; and (b) 25 30 73 Part 3 cl 104 Anti-Money Laundering and Countering Financing of Terrorism Bill (2) A person who commits an offence under either of sections 100 and 101 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) a term of imprisonment of not more than 3 5 months: a fine of up to $10,000; and (ii) in the case of a body corporate, a fine of up to $50,000.
(b) Offences relating to cross-border transportation of cash 10 104 Failure to report cash over applicable threshold value moved into or out of New Zealand A person commits an offence if the person fails, without rea- sonable excuse, to make or cause to be made a cash report, in accordance with subpart 6 of Part 2, concerning cash over 15 the applicable threshold value that the person has moved into or out of New Zealand.
105 Failure to report cash over applicable threshold value received by person in New Zealand from overseas A person commits an offence if the person fails, without rea- 20 sonable excuse, to make or cause to be made a cash report, in accordance with subpart 6 of Part 2, concerning cash over the applicable threshold value that the person has received in New Zealand from overseas.
106 Structuring cross-border transportation to avoid 25 application of AML/CFT requirements A person commits an offence if the person structures a cross- border transportation of cash to avoid the application of any AML/CFT requirements.
107 Defence 30 It is a defence to an offence under section 104 or 105 in relation to a failure to make or cause to be made a cash report to a Customs officer under section 67(d) if the defendant proves that— 74 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 111 (a) (b) the failure was due to some emergency or to any other circumstances outside the reasonable control of the de- fendant; and the defendant made or caused to be made a report in respect of that cash as soon as practicable after the obli- 5 gation to make the report arose.
Compare: 1996 No 9 s 40(3) 108 Providing false or misleading information in connection with cash report A person commits an offence if, without reasonable excuse, 10 the person makes or causes to be made a cash report knowing it is false or misleading in any material respect.
Compare: 1996 No 9 s 40(1)(b) 109 Offence to obstruct or not to answer questions from Customs officer 15 (1) A person commits an offence if the person wilfully obstructs any Customs officer in the exercise of any power conferred or performance of any duty imposed on that officer by this Act.

(2) A person commits an offence if, without reasonable excuse, the person fails to answer questions from a Customs officer.
Compare: 1996 No 9 s 40(2) 20 110 Penalties A person who commits an offence under any of sections 104, 105, 106, 108, and 109 is liable, on summary conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) a term of imprisonment of not more than 3 months: a fine of up to $10,000; and (ii) in the case of a body corporate, a fine of up to $50,000.
(b) 25 30 111 Chief executive of New Zealand Customs Service may (1) deal with cash reporting offences This section applies if, in any case to which section 104 or 105 applies, a person admits in writing that he or she has com- 35 75 Part 3 cl 112 Anti-Money Laundering and Countering Financing of Terrorism Bill (2) (3) mitted the offence and requests that the offence be dealt with summarily by the chief executive of the New Zealand Customs Service.
If this section applies, the chief executive of the New Zealand Customs Service may, at any time before an information has 5 been laid in respect of the offence, accept from that person a sum, not exceeding $500, that the chief executive of the New Zealand Customs Service thinks just in the circumstances of the case, in full satisfaction of any fine to which the person would otherwise be liable under section 110.
If the chief executive of the New Zealand Customs Service accepts any sum under this section, the offender is not liable to be prosecuted for the offence in respect of which the payment was made.

Compare: 1996 No 9 s 41 10 15 Relationship with Customs and Excise Act 1996 112 Relationship with Customs and Excise Act 1996 (1) Nothing in this Act limits or affects the Customs and Excise Act 1996.
The movement of cash in breach of any requirement of this 20 Act or any regulations is, for the purposes of the Customs and Excise Act 1996, the importation or exportation of a prohibited good.

It is the duty of every Customs officer to prevent the movement of cash that is in breach of any requirement of this Act or any 25 regulations.
For the purpose of carrying out the duty in subsection (3), a Customs officer may exercise his or her powers under the following sections of the Customs and Excise Act 1996 in re- lation to uncustomed or prohibited goods: (a) (b) section 145 (questioning persons about goods and debt): section 148 (detention of persons questioned about goods or debt): sections 149, 149A, 149B, 149C(1) and (2), and 149D (which relate to search and seizure): sections 151 and 152 (which relate to examination of goods): (c) (d) 35 30 (2) (3) (4) 76 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 112A (e) (f) (g) (h) (i) section 161 (further powers in relation to documents): section 165 (copying of documents obtained during search): section 166 (retention of documents and goods obtained during search): sections 166A to 166F (which relate to seizure and de- tention of goods suspected to be tainted property): sections 167 to 172 (which relate to search warrants and use of aids by Customs officers).
5 Computer searches by Customs officer 10 112A Duty of persons with knowledge of computer or computer network or other data storage devices to assist access to Customs officer (1) A Customs officer exercising a search or examination power (2) a computer: any other data storage device.
under section 112(4) may require a specified person to pro- 15 vide access information and other information or assistance that is reasonable and necessary to allow the Customs officer to access data held in, or accessible from,— (a) (b) In this section,— access information includes access codes, passwords, en- cryption keys, and any related information that enables access to a computer or other data storage device specified person is a person who— (a) 20 25 is the owner or lessee of the computer or other data stor- age device, or is in possession or control of the computer or other data storage device, is an employee of any of the above, or is a service provider who provides service to the above and holds access information; and has relevant knowledge of— (i) the computer or a computer network of which the computer or other data storage device forms a part; or 30 (b) (ii) measures applied to protect data held in, or ac- 35 cessible from, the computer or other data storage device.
77 Part 3 cl 113 Anti-Money Laundering and Countering Financing of Terrorism Bill (3) A specified person may not be required under subsection (1) (4) (5) (6) 5 to give any information tending to incriminate the person.
Subsection (3) does not prevent a Customs officer exercising a search power from requiring a specified person to provide information that— (a) is reasonable and necessary to allow the person exercis- ing the search power to access data held in, or accessible from, a computer or other storage device that contains or may contain information tending to incriminate the specified person; but (b) does not itself tend to incriminate the specified person.
Subsection (3) does not prevent a Customs officer exercising a search power from requiring a specified person to provide as- sistance that is reasonable and necessary to allow the Customs officer exercising the search power to access data held in, or 15 accessible from, a computer or other storage device that con- tains, or may contain, information tending to incriminate the specified person.
Subsections (1), (4), and (5) are subject to section 162 of the Customs and Excise Act 1996 (which relates to privilege 20 and confidentiality).
10 Subpart 4—Search and seizure 113 Definitions 25 In this subpart, unless the context otherwise requires,— document— (a) means any record of information; and (b) includes— (i) (ii) (iii) anything on which there is writing or any image; and anything on which there are marks, figures, sym- 30 bols, or perforations that have a meaning for per- sons qualified to interpret them; and anything from which sounds, images, or writing can be reproduced, with or without the aid of anything else 35 dwellinghouse means a building, or an apartment, a flat, or a unit within a building, that is used as a private residence 78 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 114 enforcement officer means the relevant AML/CFT supervisor or the Commissioner (as the case may require) and includes a person appointed under section 135 by an AML/CFT super- visor evidential material means any thing that there are reasonable 5 grounds for believing is or may be evidence, or may provide or contain evidence, of— (a) (b) (c) occupier, in relation to any place, includes— (a) an offence under this Part; or an attempt to commit an offence under this Part; or a civil liability act a person who is present at the place and is in apparent control of it; and any person acting on behalf of the occupier (b) place— (a) means anywhere on, under, or over any land or water; (b) and includes all or any part of a building, structure, or con- veyance seize includes to secure against interference thing includes— (a) any substance, article, document, container, or equip- ment; and anything in electronic or magnetic form.
(b) Search warrants Search warrant 114 (1) An enforcement officer may apply for a search warrant in re- (2) spect of a place.

The application must be made in writing, on oath, by an en- forcement officer.

(3) A District Court Judge, Justice of the Peace, Community Magistrate, or Registrar may issue a search warrant in respect of a place if satisfied that there are reasonable grounds for believing that there is evidential material at that place.
Every search warrant must be in the form prescribed by regu- 35 lations and be directed to— (a) an enforcement officer by name; or (4) 79 10 15 20 25 30 Part 3 cl 115 Anti-Money Laundering and Countering Financing of Terrorism Bill (b) (c) a constable by name; or every constable.

(5) Despite a warrant being directed to another person under sub- (6) section (4), it may be executed by any constable.
The Judge, Justice of the Peace, Community Magistrate, or 5 Registrar issuing the warrant may impose reasonable condi- tions on its execution.
115 Powers under search warrant (1) A search warrant issued under section 114 authorises the en- forcement officer or constable who is executing it, and any 10 person called on by that officer or constable to assist, to do any of the following: (a) (b) (c) (d) 15 20 enter and search the place at any reasonable time, on 1 occasion within 14 days after the date of the warrant being issued: use reasonable force to— (i) make entry (for example, by breaking open a door); and open any thing at the place that it is reasonable in the circumstances to open: (ii) search for and seize any evidential material at the place: inspect and copy any document; and for that purpose also do any of the following: (i) require any person at the place to produce a par- ticular document: require any person at the place who has control or knowledge of a document to reproduce, or assist in reproducing, the document in usable form: operate any equipment at the place: remove a document temporarily to another place 30 in order to copy it: 25 (ii) (iii) (iv) (e) (f) take into or onto the place whatever equipment and ma- terials the enforcement officer or constable requires for the search: require the occupier of the place to answer any ques- 35 tions put by the enforcement officer or constable.
(2) An enforcement officer or constable may require the occupier of the place to do the following: 80 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 118 (a) (b) hold any thing at the place in an unaltered state for a specified period of up to 5 working days: provide a copy of particular documents within a speci- fied period (which must be a period that is reasonable in the circumstances).

5 (3) Nothing in this section limits or affects the privilege against self-incrimination.
Conduct of entry, search, and seizure 116 Assistance with searches (1) An enforcement officer or constable may ask any person to 10 assist the enforcement officer or constable with a search under this subpart.

(2) A person who assists an enforcement officer or constable must be under the supervision of an enforcement officer or con- stable.
15 117 Enforcement officers to show identity card on request (1) An enforcement officer must produce his or her identity card (as issued under section 135(2)) for inspection— (a) (b) on entering a place under this subpart; and at any later time, on request, during a search under this 20 subpart.

(2) An enforcement officer who fails to comply with subsection (1) ceases to be authorised to enter the place or to exercise any power under this Act or any regulations with respect to the search.
25 118 Announcement before entry (1) (2) This section applies whenever an enforcement officer or con- stable enters a place under this subpart, unless the entry is made by consent.

Before entering the place, the enforcement officer or constable 30 must— (a) announce that he or she is authorised to enter the place; and give any person at the place an opportunity to consent to the entry.
(b) 35 81 Part 3 cl 119 Anti-Money Laundering and Countering Financing of Terrorism Bill (3) However, subsection (2) does not apply if the enforcement officer or constable believes on reasonable grounds that— (a) announcing entry would frustrate the purpose of the en- try; or immediate entry to the place is required to ensure the 5 safety of any person.
(b) 119 Details of warrant to be given to occupier If a place is being searched under a warrant, the enforcement officer or constable must give a copy of the warrant to the occupier or, if no person is present at the time, must leave a 10 copy of the warrant in a prominent situation, marked for the attention of the occupier.
120 Occupier entitled to be present during search (1) The occupier of a place that is subject to a search under this subpart, and who is present at any time during the search, is 15 entitled to observe the search as it is being carried out.

The right to observe the search ceases if the person observing impedes the search.

This section does not prevent 2 or more parts of the place being searched at the same time.
20 (2) (3) 121 Use of electronic equipment (1) If an enforcement officer, a constable, or a person assisting a search operates electronic equipment found at a place during a search, the officer, constable, or person must take all reason- able care not to damage the equipment or corrupt information 25 stored on it.
If, as a result of a failure to take the care required by sub- section (1), the owner of the equipment or information, or the occupier of the place that was searched, suffers damage, the owner or occupier may seek damages from the relevant 30 AML/CFT supervisor or the Police (as the case may require) in respect of that damage.
(2) 82 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 3 cl 124 (2) 122 Copies of documents seized to be provided (1) When a document that is capable of being copied is seized from a place, it must (if practicable) be copied before the ori- ginal is removed, and the copy must be left at the place.
If it is not practicable to copy the document before removing 5 it, it must be copied as soon as practicable after it is removed, and (if practicable) the copy must be promptly delivered to the occupier of the place.

Subsection (1) does not apply— (a) (3) to documents obtained as a result of operating electronic 10 equipment found at the place if the equipment is not seized and the documents remain stored on it; or if an order under subsection (4) has been made.
(b) (4) A District Court Judge, Community Magistrate, or Justice of the Peace may make an order waiving the application of sub- 15 sections (1) and (2) if satisfied that the volume of material to be copied is such that copying it will involve substantial cost and that the cost is not justified.

(5) An order under subsection (4) may be subject to whatever conditions the person making the order thinks are necessary to 20 protect the interests of the person from whom the documents have been seized.
123 Receipts for things seized (1) A person who seizes any thing during a search under this sub- part must provide the occupier with a receipt for the thing 25 seized.

(2) A single receipt may be given for more than 1 thing.
124 Application of sections 198A and 198B of Summary (1) (2) Proceedings Act 1957 Section 198A of the Summary Proceedings Act 1957, so far 30 as applicable and with all necessary modifications, applies in respect of the seizure of any documents under any search war- rant as if the search warrant had been issued under section 198 of that Act.
Section 198B of the Summary Proceedings Act 1957, so far 35 as applicable and with all necessary modifications, applies in 83 Part 3 cl 125 Anti-Money Laundering and Countering Financing of Terrorism Bill respect of accessing any documents under any search warrant as if the search warrant had been issued under section 198 of that Act.
Compare: 1996 No 9 s 50 Return and retention of things seized 5 (2) 125 Return and retention of things seized (1) An enforcement officer or constable must (subject to any order of a court) immediately return any thing seized under this sub- part to the person from whom it was seized if the reason for the thing’s seizure no longer exists or it is decided that the thing 10 is not to be used in evidence.
If a thing has not been returned under subsection (1) within 90 days of its seizure, the enforcement officer or constable must return the thing unless— (a) proceedings in respect of which the thing may afford 15 evidence were instituted within 90 days of its seizure, and those proceedings (including any appeal) have not been completed, or the time within which an appeal may be lodged in those proceedings has not expired; or there is an order in force under section 126 in respect 20 of the thing; or the enforcement officer or constable is otherwise au- thorised to retain, destroy, or dispose of the thing other than by returning it to the person from whom it was seized; or the person to whom it is to be returned cannot be found or does not wish to take back the thing.
(3) A thing may be returned conditionally or under such terms and conditions as the relevant AML/CFT supervisor or the Com- missioner (as the case may require) thinks fit.

(d) (b) (c) 30 25 (4) A thing may not be returned if it is, or is liable to be, forfeited to the Crown.
126 Order to retain things seized (1) If an enforcement officer or constable wishes to retain any thing seized under this subpart for more than 90 days, he or 35 84 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 127 she may apply to a District Court for an order under this sec- tion.
(2) A District Court Judge, Community Magistrate, or Justice of the Peace may make an order under this section if he or she is satisfied that retention of the thing is necessary— (a) 5 for the purpose of investigating an alleged offence or a civil liability act under this Part; or as evidence of an alleged offence or a civil liability act under this Part; or to secure evidence of an alleged offence or a civil liabil- 10 ity act under this Part.
(b) (c) (3) An order made under this section may be made for any period (4) (5) of up to 4 years.

If made for a shorter period, the order may be renewed at any interval, but the total period of the order, with any renewals, 15 may not exceed 4 years.
Before making an application, the enforcement officer or con- stable must— (a) take reasonable steps to discover who has an interest in the thing; and if practicable, notify each person whom the enforce- ment officer or constable believes has such an interest in the proposed application and any application for a re- newal.
(b) Part 4 Institutional arrangements and miscellaneous provisions Subpart 1—Institutional arrangements AML/CFT supervisors 127 AML/CFT supervisors (1) The AML/CFT supervisors are as follows: (a) for banks, life insurers, and non-bank deposit takers, the Reserve Bank of New Zealand (Reserve Bank) is the relevant AML/CFT supervisor: for issuers of securities, trustee companies, futures deal- 35 ers, collective investment schemes, brokers, and finan- (b) 20 25 30 85 Part 4 cl 128 Anti-Money Laundering and Countering Financing of Terrorism Bill (c) cial advisers, the Securities Commission is the relevant AML/CFT supervisor: for casinos, non-deposit-taking lenders, money chang- ers, and other reporting entities that are not covered by paragraph (a) or (b), the Department of Internal Af- 5 fairs is the relevant AML/CFT supervisor.
(2) (2A) If the products or services provided by a particular reporting entity are covered by more than 1 AML/CFT supervisor,— (a) the AML/CFT supervisors concerned may agree on the relevant AML/CFT supervisor that will be the reporting 10 entity’s AML/CFT supervisor for the purposes of this Act; and the relevant AML/CFT supervisor will notify the re- porting entity accordingly.
(b) If a reporting entity is a member of a designated business 15 group and the products and services provided by members of that designated business group are covered by more than 1 AML/CFT supervisor,— (a) the AML/CFT supervisors concerned may agree on 1 AML/CFT supervisor that will be the AML/CFT super- 20 visor for all the reporting entities that are members of the designated business group for the purposes of this Act; and that AML/CFT supervisor will notify the reporting en- tities accordingly.
(b) 25 (3) the AML/CFT supervisors cannot agree on which If AML/CFT supervisor is to be a reporting entity’s supervisor under subsections (2) or (2A), then the AML/CFT co-or- dination committee must appoint the AML/CFT supervisor for that entity.

30 (4) A reporting entity may have only 1 AML/CFT supervisor.
128 Functions The functions of an AML/CFT supervisor are to— (a) monitor and assess the level of risk of money laundering and the financing of terrorism across all of the reporting 35 entities that it supervises: (b) monitor the reporting entities that it supervises for compliance with this Act and regulations, and for 86 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 129 (c) (d) (e) this purpose to develop and implement a supervisory programme: provide guidance to the reporting entities it supervises in order to assist those entities to comply with this Act and regulations: investigate the reporting entities it supervises and en- force compliance with this Act and regulations: co-operate through the AML/CFT co-ordination com- mittee (or any other mechanism that may be appropri- ate) with domestic and international counterparts to en- 10 sure the consistent, effective, and efficient implementa- tion of this Act.
5 129 Powers (1) An AML/CFT supervisor has all the powers necessary to carry out its functions under this Act.
15 (2) Without limiting the power conferred by subsection (1), an AML/CFT supervisor may,— (a) (b) (c) on notice, require production of, or access to, all records, documents, or information relevant to its supervision and monitoring of reporting entities for 20 compliance with this Act; and conduct on-site inspections in accordance with section 130; and provide guidance to the reporting entities it supervises by— (i) (ii) producing guidelines; and preparing codes of practice in accordance with section 60; and providing feedback on reporting entities’ compli- ance with obligations under this Act and regula- 30 tions; and undertaking any other activities necessary for as- sisting reporting entities to understand their obli- gations under this Act and regulations, including how best to achieve compliance with those obli- 35 gations; and (iii) (iv) 25 (d) co-operate and share information in accordance with sections 43, 45, and 131 to 134 by communicat- 87 Part 4 cl 130 Anti-Money Laundering and Countering Financing of Terrorism Bill ing or making arrangements to communicate informa- tion obtained by the AML/CFT supervisor in the per- formance of its functions and the exercise of its powers under this Act; and in accordance with this Act and any other enactment, 5 initiate and act on requests from any overseas counter- parts; and approve the formation of, and addition of members to, designated business groups.
(e) (f) (3) An AML/CFT supervisor may only use the powers conferred 10 on it under this Act and regulations for the purposes of this Act.

130 Matters relating to conduct of on-site inspections (1) An AML/CFT supervisor may, at any reasonable time, en- ter and remain at any place (other than a dwellinghouse or a 15 marae) for the purpose of conducting an on-site inspection of a reporting entity.
(2) During an inspection, an AML/CFT supervisor may require any employee, officer, or agent of the reporting entity to an- swer questions relating to its records and documents and to 20 provide any other information that the AML/CFT supervisor may reasonably require for the purpose of the inspection.

(3) A person is not required to answer a question asked by an AML/CFT supervisor under this section if the answer would or could incriminate the person.
Before an AML/CFT supervisor requires a person to answer a question, the person must be informed of the right specified in subsection (3).

(4) 25 (5) Nothing in this section requires any lawyer to disclose any privileged communication (as defined in section 39).
30 130A Delegation of supervisory function and powers (1) An AML/CFT supervisor may delegate the following function and powers to a person who, by reason of his or her training or experience, is suitably qualified to perform that function and exercise those powers: 35 88 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 130B (a) (b) its function under section 128(d) of investigating the reporting entities it supervises: its powers under section 129(2)(a) and (b), for the purpose only of performing the function of investiga- tion under section 128(b).
5 (2) A delegation under subsection (1)— (a) must be made by the chief executive of the AML/CFT supervisor in writing; and (b) may be made subject to any restrictions and conditions that the AML/CFT supervisor thinks fit; and 10 (c) may be revoked at any time by written notice to the delegate.
(3) A person to whom a function or power of the AML/CFT super- visor is delegated under this section— (a) may, unless the delegation provides otherwise, perform 15 the function or exercise the power in the same manner, and with the same effect, as if the delegate were the AML/CFT supervisor; and (b) must disclose to the AML/CFT supervisor and manage appropriately any conflict of interest that might arise in 20 relation to the performance of the function or exercise of the power; and (c) must not disclose any information obtained under sub- section (1) other than to the AML/CFT supervisor.
(2) 130B Authority to act as delegate (1) 25 The chief executive of the AML/CFT supervisor must issue a written authorisation to every person to whom a delegation is made under section 130A stating— (a) (b) (c) The delegate, when acting in the capacity of a delegate of the AML/CFT supervisor,— (a) must carry on him or her— the name of the authorised person; and the function that he or she is authorised to perform; and 30 the powers that he or she may exercise.
(i) (ii) the written authorisation provided under sub- 35 section (1); and evidence of his or her identity; and 89 Part 4 cl 130C Anti-Money Laundering and Countering Financing of Terrorism Bill (b) must produce the written authorisation and evidence re- ferred to in paragraph (a), if requested to do so by a reporting entity that is subject to the delegated function or powers being performed or exercised by the delegate.
(3) The delegate must return the written authorisation to the 5 AML/CFT supervisor as soon as his or her delegation is revoked.

130C Effect of delegation (1) No delegation under section 130A— (a) (b) affects or prevents the performance of any function or 10 the exercise of any power by the AML/CFT supervisor; or affects the responsibility of the AML/CFT supervisor for the performance of its functions and the exercise of its powers.
15 (2) Every person to whom a function or power is delegated under section 130A has the same immunities in relation to the per- formance of that function or the exercise of that power as the AML/CFT supervisor that made the delegation.

Use and disclosure of information 20 (2) (1) 131 Power to use information obtained as AML/CFT supervisor in other capacity and vice versa This section applies to information other than personal infor- mation.
The Reserve Bank may use any information obtained or held 25 by it in the exercise of its powers or the performance of its functions and duties under the Reserve Bank of New Zealand Act 1989 for the purpose of exercising its powers or perform- ing its functions and duties under this Act as an AML/CFT supervisor.
The Reserve Bank may use any information obtained or held by it in the exercise of its powers or the performance of its functions and duties under this Act as an AML/CFT supervisor for the purpose of exercising its powers or performing its func- tions and duties under the Reserve Bank of New Zealand Act 35 1989.
(3) 30 90 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 133 (4) (5) (6) (7) The Securities Commission may use any information obtained or held by it in the exercise of its powers or the performance of its functions and duties under the Securities Act 1978, the Securities Markets Act 1988, and the Financial Advisers Act 2008 for the purpose of exercising its powers or performing 5 its functions and duties under this Act as an AML/CFT super- visor.
The Securities Commission may use any information obtained or held by it in the exercise of its powers or the performance of its functions and duties under this Act as an AML/CFT super- 10 visor for the purpose of exercising its powers or performing its functions and duties under the Securities Act 1978, the Secur- ities Markets Act 1988, and the Financial Advisers Act 2008.
The Department of Internal Affairs may use any information obtained or held by it in the exercise of its powers or the per- 15 formance of its functions and duties under the Gambling Act 2003 for the purpose of exercising its powers or performing its functions and duties under this Act as an AML/CFT super- visor.
The Department of Internal Affairs may use any information 20 obtained or held by it in the exercise of its powers or the performance of its functions and duties under this Act as an AML/CFT supervisor for the purpose of exercising its powers or performing its functions and duties under the Gambling Act 2003.
25 132 Restriction on power to use information under section 131 An AML/CFT supervisor may only use information obtained under section 131 if the person providing the information was advised of the purpose or purposes for which the infor- mation was obtained at the time he or she provided that infor- 30 mation.
133 Power to disclose information supplied or obtained as AML/CFT supervisor The Commissioner, the New Zealand Customs Service, or an AML/CFT supervisor may disclose any information (that is 35 not personal information) supplied or obtained by it in the ex- ercise of its powers or the performance of its functions and 91 Part 4 cl 134 Anti-Money Laundering and Countering Financing of Terrorism Bill duties under this Act to any government agency for law en- forcement purposes if it is satisfied that the agency has a proper interest in receiving such information.
134 Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes 5 (2) (1) A government agency or an AML/CFT supervisor may disclose to any other AML/CFT supervisor or government agency any information supplied or obtained under an en- actment listed in subsection (2) if the disclosure of that information is necessary or desirable for the purpose of 10 ensuring compliance with this Act and regulations.
The enactments referred to in subsection (1) are— (a) (b) (c) (ca) (d) the Companies Act 1993: the Criminal Proceeds (Recovery) Act 2009: the Customs and Excise Act 1996: the Financial Advisers Act 2008: the Financial Service Providers (Registration and Dis- pute Resolution) Act 2008: the Financial Transactions Reporting Act 1996: the Gambling Act 2003: the New Zealand Security Intelligence Service Act 1969: the Proceeds of Crime Act 1991: the Reserve Bank of New Zealand Act 1989: the Securities Act 1978: the Securities Markets Act 1988: the Terrorism Suppression Act 2002.
(e) (f) (g) (h) (i) (j) (k) (l) 20 25 15 135 Enforcement officers (1) For the purposes of this Act, an AML/CFT supervisor may ap- point any employee as an enforcement officer, on a permanent 30 or temporary basis, to exercise the powers conferred on the AML/CFT supervisor by this Act.

(2) An AML/CFT supervisor must issue its enforcement officers with an identity card.
(3) An enforcement officer must— 35 92 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 136 (a) (b) carry his or her identity card at all times when acting as an enforcement officer under this Act or regulations; and return his or her identity card to the relevant AML/CFT supervisor immediately upon ceasing to be an enforce- 5 ment officer.
Financial intelligence functions of Commissioner 136 Financial intelligence functions of Commissioner The financial intelligence functions of the Commissioner are 10 to— (a) (b) receive suspicious transaction reports: produce guidance material, including— (i) typologies of money laundering and financing of terrorism transactions: information for reporting entities on their obliga- tions to report suspicious transactions and how to meet those obligations: 15 (ii) (c) (d) (e) (f) (g) (h) 20 provide feedback to reporting entities on the quality and timeliness of their suspicious transaction reporting: enforce requirements to provide suspicious transaction reports: analyse suspicious transaction reports to assess whether any should be referred to investigative branches of the New Zealand Police and to other law enforcement agen- 25 cies for criminal investigation: access, directly or indirectly, on a timely basis the finan- cial, administrative, and law enforcement information that the Commissioner requires to properly undertake his or her financial intelligence functions, including the 30 analysis of suspicious transaction reports: refer to investigative branches of the New Zealand Po- lice and to other law enforcement agencies any suspi- cious transaction reports that, in the view of the Com- missioner, indicate grounds for criminal investigation: refer suspicious transaction reports and feedback pro- vided to reporting entities on any suspicious transaction reports to AML/CFT supervisors: 35 93 Part 4 cl 137 Anti-Money Laundering and Countering Financing of Terrorism Bill (i) (j) (k) (l) receive, analyse, and (if appropriate) refer to law en- forcement agencies any cash reports: receive, analyse, and (if appropriate) refer to law en- forcement agencies any suspicious property reports: produce risk assessments relating to money laundering 5 offences and the financing of terrorism to be used by the Ministry, the Ministry of Justice, AML/CFT super- visors, and the New Zealand Customs Service: co-operate with the Ministry, the Ministry of Justice, AML/CFT supervisors, the New Zealand Customs Ser- 10 vice, and any other relevant agencies to help ensure the effective implementation of the requirements under this Act and regulations.
137 Powers relating to financial intelligence functions of Commissioner The Commissioner may— (a) order production of or access to all records, documents, or information from any reporting entity that is relevant to analysing a suspicious transaction report received by the Commissioner, with or without a court order; and share suspicious transaction reports, cash reports, suspi- cious property reports, and other financial information and intelligence with domestic and international author- ities for the purposes of this Act and regulations.
(b) 138 Delegation of powers of Commissioner (1) The Commissioner may from time to time in writing, either generally or particularly, delegate to a constable of a level of position not less than inspector the Commissioner’s powers under section 137(a).
(2) Where any constable exercises any power conferred under 30 subsection (1), that constable must, within 5 days after the day on which the constable exercises the power, give the Com- missioner a written report on the exercise of that power and the circumstances in which it was exercised.
(3) A constable who purports to perform a power under a delega- 35 tion— 94 15 20 25 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 139 (a) is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and (b) must produce evidence of his or her authority to do so, if reasonably requested to do so.

5 (4) Every delegation under this section is revocable at will and does not prevent the exercise of any power by the Commis- sioner.
139 Guidelines relating to reporting of suspicious transactions (1) Subject to section 140, the Commissioner must issue, in re- 10 spect of each kind of reporting entity to which this Act applies, guidelines— (a) setting out any features of a transaction that may give rise to a suspicion that the transaction is or may be— (i) (ia) (ii) (iii) (iv) relevant to the investigation or prosecution of any 15 person for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; or relevant to the investigation or prosecution of a serious offence within the meaning of section 25 243(1) of the Crimes Act 1961; and 20 (b) setting out any circumstances in which a suspicious transaction report relating to such a transaction may be made orally in accordance with section 38(2), and the procedures for making such an oral report.
30 (2) (3) Suspicious transaction guidelines must be issued in such man- ner as the Commissioner from time to time determines.

The Commissioner may issue an amendment or revocation of any suspicious transaction guidelines.
(4) Without limiting subsection (1), suspicious transaction 35 guidelines issued under this section may relate to 1 or more kinds of reporting entities, and such guidelines may make 95 Part 4 cl 140 Anti-Money Laundering and Countering Financing of Terrorism Bill different provision for different kinds of reporting entities and different kinds of transactions.
Compare: 1996 No 9 s 24 140 Consultation on proposed guidelines (1) The Commissioner must, before issuing any suspicious trans- 5 action guidelines,— (a) (b) (c) (ii) consult with, and invite representations from, the Pri- vacy Commissioner under the Privacy Act 1993, and must have regard to any such representations; and give public notice of the Commissioner’s intention to 10 issue the guidelines, which notice must contain a state- ment— (i) indicating the Commissioner’s intention to issue the guidelines; and inviting reporting entities that are likely to be af- 15 fected by the proposed guidelines, and industry organisations that are representative of those re- porting entities, to express to the Commissioner, within any reasonable period that is specified in the notice, their interest in being consulted in the 20 course of the development of the guidelines; and consult with, and invite representations from, those re- porting entities and industry organisations who express such an interest, and must have regard to any such rep- resentations.
25 (2) Nothing in subsection (1) prevents the Commissioner from adopting any additional means of publicising the proposal to issue any suspicious transaction guidelines or of consulting with interested parties in relation to such a proposal.

This section applies to any amendment or revocation of any 30 suspicious transaction guidelines.
Compare: 1996 No 9 s 25 (3) 141 Availability of guidelines On a request by any reporting entity in respect of which any suspicious transaction guidelines are for the time being 35 in force, or by any industry organisation that represents the reporting entity, the Commissioner must, without charge,— 96 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 143 (a) make those guidelines, and all amendments to those guidelines, available for inspection by that reporting en- tity or, as the case requires, that industry organisation at Police National Headquarters; and provide copies of those guidelines, and all amendments 5 to those guidelines, to that reporting entity or, as the case requires, that industry organisation.
(b) Compare: 1996 No 9 s 26 142 Review of guidelines (1) (2) The Commissioner must review from time to time any suspi- 10 cious transaction guidelines for the time being in force.

Sections 139 and 140 apply, with all necessary modifica- tions, in relation to any such review as if the review were a proposal to issue suspicious transaction guidelines.
Compare: 1996 No 9 s 27 15 143 Role of Ministry Co-ordination The Ministry, in consultation with other agencies with AML/CFT roles and functions, is responsible for advising on the overall effectiveness and efficiency of the AML/CFT 20 regulatory system, including— (a) advising the Minister on outcomes and objectives for AML/CFT regulation and how best to achieve these (in- cluding links to other Government initiatives relevant to the purposes of this Act); and 25 (b) monitoring, evaluating, and advising the Minister on the performance of the AML/CFT regulatory system in achieving the Government’s outcomes and objectives for it; and advising the Minister on any changes necessary to the 30 AML/CFT regulatory system to improve its effective- ness; and administering the relevant AML/CFT legislation.
(d) (c) 97 Part 4 cl 144 Anti-Money Laundering and Countering Financing of Terrorism Bill 144 AML/CFT co-ordination committee (1) The chief executive must establish an AML/CFT co-ordin- ation committee consisting of— (a) (b) a representative from the Ministry; and a representative from the New Zealand Customs Ser- 5 vice; and every AML/CFT supervisor; and a representative of the Commissioner; and such other persons as are invited from time to time by the chief executive in accordance with subsection (2).
10 (c) (d) (e) (2) Any person invited under subsection (1)(e) must be em- (3) ployed in a government agency.

The chair of the AML/CFT co-ordination committee is the chief executive.

145 Role of AML/CFT co-ordination committee The role of the AML/CFT co-ordination committee is to en- sure that the necessary connections between the AML/CFT supervisors, the Commissioner, and other agencies are made in order to ensure the consistent, effective, and efficient oper- ation of the AML/CFT regulatory system.
15 20 146 Functions The functions of the AML/CFT co-ordination committee are to— (a) facilitate necessary information flows between the AML/CFT supervisors, the Commissioner, and other 25 agencies involved in the operation of the AML/CFT regulatory system: facilitate the production and dissemination of infor- mation on the risks of money-laundering offences and the financing of terrorism in order to give advice and 30 make decisions on AML/CFT requirements and the risk-based implementation of those requirements: facilitate co-operation amongst AML/CFT supervisors and consultation with other agencies in the development of AML/CFT policies and legislation: facilitate consistent and co-ordinated approaches to the development and dissemination of AML/CFT guidance 35 (b) (c) (d) 98 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 147 (e) (f) materials and training initiatives by AML/CFT super- visors and the Commissioner: facilitate good practice and consistent approaches to AML/CFT supervision between the AML/CFT super- visors and the Commissioner: provide a forum for examining any operational or pol- icy issues that have implications for the effectiveness or efficiency of the AML/CFT regulatory system.
Subpart 2—Miscellaneous provisions Regulations 147 Regulations 5 10 The Governor-General may, by Order in Council, make regu- lations for all or any of the following purposes: (a) prescribing requirements (generic and sector-specific) for standard, simplified, enhanced, and ongoing cus- 15 tomer due diligence and any other AML/CFT require- ments, including, but not limited to, the following: (i) information to be provided or obtained for the purposes of identification and verification: the circumstances in which a particular type of 20 customer due diligence must be conducted: specifying entities or classes of entities, or prod- ucts, services, or transactions for which a report- ing entity may conduct simplified customer due diligence: the conditions in which third parties may be re- lied on to conduct customer due diligence: the conditions on which a member of a desig- nated business group may adopt an AML/CFT programme of another member of the group and 30 share and use the policies, controls, and proced- ures of that programme: the circumstances in which corporations are deemed to be affiliated: 25 (ii) (iii) (iv) (v) (vii) (viii) the factors that a reporting entity must have re- 35 gard to when assessing risk: 99 Part 4 cl 148 Anti-Money Laundering and Countering Financing of Terrorism Bill (c) (d) (e) (f) (h) (k) (l) (m) (o) 5 prescribing instruments to be bearer-negotiable instru- ments for the purposes of this Act: prescribing the forms of, and the information to be included in, applications, warrants, reports, and other documents required under this Act: prescribing amounts or thresholds that are required to be prescribed for the purposes of this Act: prescribing the information to be included in records and the manner in which records are to be kept by re- porting entities, or any specified class or classes of re- 10 porting entities: prescribing other identifying information that allows a transaction to be traced back to the originator for the purposes of section 24(1): prescribing the manner in which any notice, report, or 15 other document required by this Act is to be given or served: prescribing for the form of a formal warning and the manner in which it must be issued: specifying Acts for which disclosure of personal infor- 20 mation may be made by an AML/CFT supervisor for the purposes of the detection, investigation, and pros- ecution of offences under the specified Act: providing for any other matters contemplated by this Act or necessary for its administration or necessary for 25 giving it full effect.
Compare: 1996 No 9 s 56 148 Regulations relating to application of Act (1) The Governor-General may, by Order in Council on the rec- ommendation of the Minister, make regulations for the follow- 30 ing purposes: (a) exempting or providing for the exemption of any trans- action, product, or service or class of transactions, prod- ucts, or services from all or any of the provisions of this Act: excluding certain relationships or banking services from the application of section 26 (which relates to correspondent banking relationships): 35 (ab) 100 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 148 (ac) (ad) (b) (c) (d) (e) (f) (g) 5 10 exempting a reporting entity from its obligation to ob- tain some or all of the information set out in section 24(1) in relation to a specified transfer or transaction: exempting certain movements of cash from the applica- tion of subpart 6 of Part 2: prescribing threshold values for the purposes of sec- tions 65 and 66 and the person or class of persons, transaction or class of transactions, financial activity or class of financial activities to which that threshold value applies: declaring an account or arrangement to be, or not to be, a facility and the circumstances and conditions in which an account or arrangement is to be, or not to be, a facility for the purposes of this Act: declaring a person or class of persons to be, or not to be, 15 a reporting entity and the circumstances and conditions in which a person or class of persons is to be, or not to be, a reporting entity for the purposes of this Act: declaring a transaction or class of transactions to be, or not to be, an occasional transaction and the circum- 20 stances and conditions in which a transaction or class of transactions is to be, or not to be, an occasional transac- tion for the purposes of this Act: declaring a transfer or transaction or a class of transfers or transactions not to be a wire transfer and the circum- 25 stances and conditions in which a transfer or transaction or class
 of transfers or transactions is not a wire transfer for the purposes of this Act: declaring a person or class of persons to be, or not to be, a customer and the circumstances and conditions in 30 which a person or class of persons is to be, or not to be, a customer for the purposes of this Act: (h) (ga) declaring an entity or class of entities (whether domestic or overseas) to be a member of a specified designated business group: declaring a person or class of person to be, or not to be, a financial institution for the purposes of this Act.
The Minister must, before making any recommendation, have regard to— 35 (2) 101 Part 4 cl 148 Anti-Money Laundering and Countering Financing of Terrorism Bill (a) (b) (c) (d) (e) (f) the purposes of this Act and the Financial Transactions Reporting Act 1996; and the risk of money laundering and the financing of ter- rorism; and the impact on the prevention, detection, investigation, 5 and prosecution of offences; and the level of regulatory burden on a reporting entity; and whether the making of the regulation would create an unfair advantage for a reporting entity or would disad- vantage other reporting entities; and the overall impact that making the regulation would the have on the integrity of, and compliance with, AML/CFT regulatory regime.
10 (3) The Minister must also, before making any recommenda- tion,— (a) 15 do everything reasonably possible on the Minister’s part to advise all persons who in the Minister’s opinion will be affected by any regulations made in accordance with the recommendation, or representatives of those per- sons, of the proposed terms of the recommendation and 20 of the reasons for it; and give such persons or their representatives a reasonable opportunity to consider the recommendation and to make submissions on it to the Minister, and the Minister must consider those submissions; and give notice in the Gazette, not less than 28 days before making the recommendation, of the Minister’s intention to make the recommendation and state in the notice the matters to which the recommendation relates; and 25 (b) (c) (d) make copies of the recommendation available for in- 30 spection by any person who so requests before any regu- lations are made in accordance with the recommenda- tion.
(4) Failure to comply with subsection (3) does not affect the validity of any regulations made under this section.

35 (5) Any regulations made under this section expire on the day that is 5 years after the date on which regulations come into force.
102 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 150 149 Regulations relating to countermeasures (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for, or in relation to, prohibiting or regulating the entering into of trans- actions or business relationships between a reporting entity 5 and any other person.
Regulations made for the purposes of subsection (1)— (a) may be of general application; or (b) may be limited by reference to any or all of the follow- (2) ing: (i) (ii) (iii) a specified transaction: a specified party: a specified overseas country.

10 (3) The Governor-General may, by Order in Council, declare a country outside New Zealand to be a prescribed overseas 15 country for the purposes of this section.
(4) Any regulations made under subsection (1) expire on the day that is 5 years after the date on which regulations come into force.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 20 s 102 (Aust) 150 Consultation not required for consolidation of certain regulations and minor amendments The Minister is not required to comply with section 148(3) in respect of the making of any regulations to the extent that 25 regulations— (a) revoke any regulations made under section 148 and, at the same time, consolidate the revoked regulations, so that they have the same effect as those revoked regu- lations; or 30 (b) make minor amendments to regulations.
Compare: 1996 No 9 s 56A 103 Part 4 cl 151 Anti-Money Laundering and Countering Financing of Terrorism Bill Ministerial exemptions 151 Minister may grant exemptions (1) (2) (3) a reporting entity or class of reporting entities; or a transaction or class of transactions The Minister may, in the prescribed form, exempt any of the following from the requirements of all or any of the provisions of this Act: (a) (b) The Minister may grant the exemption— unconditionally; or (a) (b) subject to any conditions the Minister thinks fit.
Before deciding to grant an exemption and whether to attach any conditions to the exemption, the Minister must have regard to the following: (a) 5 10 15 the intent and purposes of the Financial Transactions Reporting Act 1996: the intent and purpose of this Act and any regulations: the risk of money laundering and the financing of ter- rorism associated with the reporting entity, including, where appropriate, the products and services offered by the reporting entity and the circumstances in which the 20 products and services are provided: the impacts on prevention, detection, investigation, and prosecution of offences: the level of regulatory burden to which the reporting en- tity would be subjected in the absence of an exemption: 25 whether the exemption would create an unfair advan- tage for the reporting entity or disadvantage third party reporting entities: the overall impact that the exemption would have on the integrity of, and compliance with, the AML/CFT 30 regulatory regime.
(b) (c) (d) (e) (f) (g) (4) Every exemption made under this section is deemed to be a regulation for the purposes of the Regulations (Disallowance) Act 1989.
152 Minister must consult before granting exemption 35 Before granting an exemption under section 151, the Minis- ter must consult with— 104 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 4 cl 156 (a) (b) the Ministers responsible for the AML/CFT super- visors; and any other persons the Minister considers appropriate having regard to those matters listed in section 151(3).
153 Requirements relating to exemptions (1) The exemption must include an explanation of the reason for granting the exemption.

The exemption— (a) must be granted for a period specified by the Minister but that period must not be more than 5 years; and (b) may, at any time, be varied or revoked by the Minister.

The exemption must be notified in the Gazette.


(2) (3) 5 10 Transitional and savings provisions 154 Transitional and savings provisions Transitional and savings provisions relating to the coming into 15 force of this Act are set out in Schedule 1.
Consequential amendments, repeals, and revocation 155 Amendments to other enactments (1) The enactment specified in Part 1 of Schedule 2 is amended 20 in the manner indicated in that part of that schedule (being consequential amendments relating to the bringing into force of provisions relating to cross-border transportation of cash).

The enactments specified in Part 2 of Schedule 2 are amended in the manner indicated in that schedule (being 25 consequential amendments to other enactments).
The regulations specified in Part 3 of Schedule 2 are re- voked.

(2) (3) 156 Amendment to Financial Transactions Reporting Act 1996 consequential on bringing into force of Part 2 The Financial Transactions Reporting Act 1996 is amended by repealing paragraphs (a) to (f), (h), (i), and (k) of the definition of financial institution in section 3(1).
30 105 Part 4 cl 157 Anti-Money Laundering and Countering Financing of Terrorism Bill 157 Amendment to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash The Financial Transactions Reporting Act 1996 is amended by repealing Part 5.
106 1 (1) (2) (3) 2 3 Anti-Money Laundering and Countering Financing of Terrorism Bill Schedule 1 s 154 Schedule 1 Transitional and savings provisions Offences and breaches of Financial Transactions Reporting Act 1996 This clause applies to an offence under, or a breach of, the Fi- 5 nancial Transactions Reporting Act 1996 that was committed before the commencement of this Act.
If this clause applies, then for the purpose of doing the things specified in subsection (3), the Financial Transactions Re- porting Act 1996 continues to have effect as if this Act had 10 not been enacted.
The things referred to in subclause (2) are as follows: (a) (b) investigating the offence or breach: commencing, continuing, or completing proceedings for the offence or breach: imposing a penalty for the offence or breach (which, for the avoidance of doubt, must be the same as the penalty that applied to the offence or the breach before this Act was enacted).

(c) 15 Barred proceedings Nothing in this Act enables any proceedings to be brought that were barred before the commencement of this Act.
20 Pending proceedings Any proceedings that have been commenced under the Finan- cial Transactions Reporting Act 1996 before the commence- 25 ment of this Act may be continued and completed after that commencement as if this Act had not been enacted, and the Fi- nancial Transactions Reporting Act 1996 applies accordingly.
107 Schedule 2 Anti-Money Laundering and Countering Financing of Terrorism Bill Schedule 2 Consequential amendments Part 1 Amendments to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash s 155 Section 2(1) Definitions of cash report and Customs officer: repeal.

Definition of cash: omit “except in Part 5 of this Act,”.
Part 2 Amendments to other enactments Crimes Act 1961 (1961 No 43) Section 244: insert after paragraph (b): 5 10 “(ba) the enforcement or intended enforcement of the Anti- Money Laundering and Countering Financing of Ter- 15 rorism Act 2009; or”.
Criminal Proceeds (Recovery) Act 2009 (2009 No 8) Definition of financial institution in section 5(1): repeal and substi- tute: “financial institution means either a person within the mean- 20 ing of financial institution as defined in section 3 of the Finan- cial Transactions Reporting Act 1996 or as defined in section 4 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009”.
Customs and Excise Act 1996 (1996 No 27) Section 166A(b)(ii): repeal and substitute: “(ii) subpart 6 of Part 2 and sections 112 and 112A of the Anti-Money Laundering and Coun- tering Financing of Terrorism Act 2009; and”.

Section 166C(4): insert after paragraph (b): “(ba) Anti-Money Laundering and Countering Financing of Terrorism Act 2009:”.
25 30 108 Anti-Money Laundering and Countering Financing of Terrorism Bill Schedule 2 Part 2—continued Financial Transactions Reporting Act 1996 (1996 No 9) Long Title: insert “the Terrorism Suppression Act 2002 and” after “enforcement of”.

Paragraph (b) of the Long Title: repeal.

Section 15(1)(b): insert after subparagraph (i): 5 “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.
Section 16: insert after paragraph (a): “(ab) that the transaction or proposed transaction is or may be 10 relevant to the enforcement of the Terrorism Suppres- sion Act 2002; or”.

Section 21(2): insert after paragraph (a): “(ab) the enforcement of the Terrorism Suppression Act 2002:”.

Section 22(1)(b): insert after subparagraph (i): “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.
Section 24(1)(a): insert after subparagraph (i): 15 20 “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.

Section 28: insert after paragraph (d): “(da) the enforcement of the Terrorism Suppression Act 25 2002:”.

Section 56(1)(b): omit “Parts 2 and 5 of this Act” and substitute “Part 2”.
Misuse of Drugs Act 1975 (1975 No 116) Section 12B(6): insert after paragraph (b): 30 “(ba) the enforcement or intended enforcement of the Anti- Money Laundering and Countering Financing of Ter- rorism Act 2009; or”.
109 Schedule 2 Anti-Money Laundering and Countering Financing of Terrorism Bill Part 2—continued Mutual Assistance in Criminal Matters Act 1992 (1992 No 86) Definition of financial institution in section 2(1): repeal and substi- tute: “financial institution means either a person within the mean- ing of financial institution as defined in section 3 of the Finan- 5 cial Transactions Reporting Act 1996 or as defined in section 4 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009”.
Reserve Bank of New Zealand Act 1989 (1989 No 157) Section 41(1): add “and the Anti-Money Laundering and Countering 10 Financing of Terrorism Act 2009”.

Section 41(2): insert “, or the Anti-Money Laundering and Counter- ing Financing of Terrorism Act 2009,” after “by this Act”.

Section 51(5): insert “or under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009,” after “by this Act”.
Section 51: add: “(9) To avoid doubt, the Governor’s functions and powers include his or her functions and powers under the Anti-Money Laun- dering and Countering Financing of Terrorism Act 2009.” 15 20 Terrorism Suppression Act 2002 (2002 No 34) Section 44(1)(b): insert “or by a reporting entity” after “by a financial institution”.

Section 44(1)(b): insert “or the reporting entity” after “the financial institution”.
Section 44(1)(d)(ii): insert “or reporting entity, as the case may be,” 25 after “that Commissioner and the financial institution”.

Section 44(2): insert “or the reporting entity” after “the financial in- stitution”.

Section 44(4): insert “or reporting entity” after “financial institution” in each place where it appears.
Section 44(5): repeal and substitute: “(5) In this section, section 47, and Schedule 5,— 30 110 Anti-Money Laundering and Countering Financing of Terrorism Bill Schedule 2 Terrorism Suppression Act 2002 (2002 No 34)—continued Part 2—continued “(a) “(b) in the case of a financial institution to which the Finan- cial Transactions Reporting Act 1996 applies, facility, financial institution, suspicious transaction report, and transaction have the meanings given to them in section 2(1) of that Act; and in the case of a reporting entity to which the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 applies, facility, reporting entity, suspicious transaction report, and transaction have the meanings given to them in section 4 of that Act.” Section 47(1)(b)(i): insert “or reporting entity” after “financial insti- tution”.
Section 47A(1)(a): insert after subparagraph (i): 5 10 “(ia) subpart 6 of Part 2 and sections 112 and 112A of the Anti-Money Laundering and Coun- 15 tering Financing of Terrorism Act 2009; or”.

Section 47C(5): insert after paragraph (a): “(ab) Anti-Money Laundering and Countering Financing of Terrorism Act 2009:”.

Schedule 5: insert “or reporting entity” after “financial institution” 20 in each place where it appears.
Part 3 Regulations revoked Financial Transactions Reporting (Interpretation) Regulations 1997 (SR 1997/48) 25 111 Anti-Money Laundering and Countering Financing of Terrorism Bill Legislative history Introduction (Bill 46–1) First reading and referral to Foreign Affairs, Defence and Trade Committee Reported from Foreign Affairs, Defence and Trade Committee (Bill 46–2) Second reading Committee of the whole House (Bill 46–3) 25 June 2009 30 June 2009 14 September 2009 24 September 2009 13 October 2009 12 Published under the authority of the House of Representatives—2009 Wellington, New Zealand: 112